Global M&A Trends in Q1 2026 and What They Reveal About Corporate Risk

by Mark Xiao and Laura Twizere

A recent report by S&P Global Market Intelligence shows that global M&A activity in Q1 2026 was driven by rising deal values despite a decline in overall deal volume. These trends—marked by megadeals, cross-border expansion, and increased concentration of capital—are reshaping how companies approach deal strategy, risk management, and regulatory exposure.

In the first quarter of 2026, global M&A deal volume reached $861.1B, scoring a 9.7% increase from Q1 2025 and the strongest start since 2021. Large deals drove much of the activity, led by Space Exploration Technologies Corp’s $250B acquisition of X.AI LLC, which accounted for nearly 30% of total deal value this quarter. As companies continue to diversify supply chains and expand local production, cross-border M&A remained elevated at $319.1B. The U.S. led cross-border activity with 409 deals, while Europe was the most targeted region with 986 inbound transactions.

Regionally, deal value was concentrated in North America:

• United States and Canada: $577B
• Europe: $157B
• Asia-Pacific: $79B
• Middle East: $18.8B
• Latin America: $17.7B
• Africa: $11.1B

By sector, information technology led activity, followed by utilities and industrials. Artificial Intelligence (“AI”) was a key driver this quarter as tech companies competed to win the AI race and utilities moved to support rising power demand tied to data-center buildouts. Equity stake purchases also continued to grow, accounting for 29% of total deal value for the quarter.

Top 5 deals this quarter:

• S. based Space Exploration Technologies Corp acquired U.S. based X.AI LLC for $250B.
• S., Quatar and Sweden based Global Infrastructure Management LLC, EQT Infrastructure VI Fund, California Public Employees’ Retirement System, Qatar Investment Authority and EQT AB acquired U.S. based AES Corp for $48.1B.
• S based Devon Energy Corp acquired U.S. based Coterra Energy Inc for $25.B.
• France based Engie SA acquired UK based UK Power Networks Holdings Ltd for $21.4B.
• S. based Boston Scientific Corp acquired U.S. based Penumbra Inc for $14.5B.

Antitrust Risk

High activity in information technology and utilities raises antitrust risk, especially where consolidation intersects with critical infrastructure. The scale of investment in data centers and dedicated energy supply has drawn increased scrutiny from regulators and commentators, who have flagged it as a potential antitrust flashpoint. A central concern is that a small number of large buyers could tie up scarce grid capacity and renewable resources.

Due Diligence

With higher deal volume comes a greater need for rigorous due diligence. Due diligence is a critical step in the M&A process and is typically led by the parties’ counsel and their teams. The objective is to evaluate key risk areas and help protect clients from unexpected liabilities.

Due diligence generally includes two complementary tracks: hard due diligence and soft due diligence. Hard due diligence focuses on objective records and analysis such as financial statements, contracts, regulatory compliance, and litigation. Soft due diligence examines how the business operates in practice, including corporate culture, leadership, workforce dynamics, and customer or client relationships.

Assessing employment-related risks often combines both hard and soft due diligence. M&A transactions may result in significant changes to employment-related matters such as employee benefits, compensation plans, and retirement programs. In some cases, employees may assert claims; for example, alleging violations of labor rights or disputing the assumption of pension liabilities.

Cross-Border Due Diligence

Cross-border M&A was high this past quarter and is likely to remain an important source of growth, but it also introduces unique due diligence challenges. These may include limited access to reliable information about the target, differing disclosure and reporting requirements, complex tax structures, cultural and language barriers, and layered legal and regulatory processes across jurisdictions. In Europe, in particular, this quarter’s most targeted region, strict labor laws and the need to obtain work council approvals may complicate deal timelines.

Post-Transaction Litigation Risks

Litigation risk can persist even after an M&A transaction closes. Post-transaction disputes often involve alleged breaches of warranties, disagreements over performance expectations, or conflicts tied to post-close obligations.

Breach-of-contract claims are a common source of post-transaction litigation. These disputes typically arise from differing interpretations of the agreement’s terms; for example, provisions governing purchase-price adjustments, earn-outs or other performance targets, and the scope of representations and warranties made by either party during negotiations.

These risks underscore the importance of clearly drafted indemnification provisions. Indemnification clauses typically require the seller to compensate the buyer for losses resulting from breaches of warranties, misrepresentations, or other liabilities that were not disclosed (or not fully understood) during the due diligence period.

Experienced Counsel

Experienced counsel in M&A are invaluable business partners as they handle the legal aspects and also help ensure the long-term success and stability of the business. With their assistance on due diligence, compliance, transaction structuring, risk assessment and pre- and post-completion matters. Miller Shah has a strong M&A practice with a multi-disciplinary, team-oriented approach to handle transactions of all sizes from less than $1 million to more than $1 billion.