Global M&A deal rush fades in third quarter as rising borrowing costs bite

Global M&A deal activity slowed in the third quarter as high borrowing costs dampened investor appetite, according to LSEG data. The total value of deals reached $993 billion, a 41% decrease compared to the previous quarter, marking the first quarter below $1 trillion since the second quarter of 2025. Notable deals included Banca Monte dei Paschi's $32 billion acquisition of Banco BPM and Gold Fields' $25.7 billion bid for Northern Star Resources, the latter being the smallest of the 10 deals over $10 billion announced.

Despite the slowdown, the year-to-date M&A value remains the highest since 2001 at $3.9 trillion, with the number of deals down 8% year-over-year. Historically high investment in the technology sector, particularly strategic acquisitions, accounted for about a quarter of global M&A so far this year. While US and European M&A slowed, Asia Pacific M&A activity reached $242 billion, an 8% increase year-to-date and 36% higher than the same period in 2025.

Stronger corporate activity in the technology sector, fueled by IPOs and new listings, has also contributed to the continued deal momentum.