Cross-border M&A activity is likely to remain strong in H2 2026, with technology, especially artificial intelligence (AI), energy and supply-chain security emerging as key drivers, as per a report by JPMorgan.
According to the report, cross-border deal activity surged 63% YoY to USD 820 billion in H1 2026, accounting for 26% of total M&A volume. The activity was concentrated in larger deals, with 17 of the 48 mega-deals being cross-border and contributing 37% of total cross-border volume.
"Momentum is being driven by strategically critical sectors, specifically technology, financials, energy and power," it noted.
The report further highlighted that US and UK remain key cross-border M&A corridors, with six of the 10 largest deals being transatlantic. With this, European buyers are targeting the US to diversify growth and gain access to innovation, while deals involving European targets are largely focused on consolidation and building stronger regional champions.
At the same time, geopolitical tensions and protectionist policies are also widening valuation gaps and reshaping deal corridors, prompting buyers to prioritise resilience and strategic capabilities.
Meanwhile, AI has emerged as a key driver of deal activity and capital formation in 2026, with corporates and investors making long-term investments to integrate the technology into core operations. Rising AI adoption and compute demand are also benefiting the broader ecosystem, including data centres, power, cooling, networks and enabling software.
While urgency is high, and the "fear of missing out" is increasing, macro volatility (trade, energy prices, rates) and uncertainty around the pace of disruption continue to weigh on traditional M&A, as per JPMorgan.
The report noted that four of the top five global deals in H1 2026 were linked to AI and its growing infrastructure needs. AI-linked stake sales, including major funding rounds for frontier AI model platforms, totalled USD 370 billion during the first half.
Additionally, six mega-funding rounds accounted for 40% of minority investment volume and 8% of H1 2026 total deal volume, which shows AI capital formation has become a meaningful driver of headline M&A activity.
"As the emphasis shifts from efficiency-first globalisation to security-first strategic alignment, H2 2026 cross-border activity is likely to be strong and increasingly related to technological sovereignty, energy resilience and supply-chain friendshoring," it said.
