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Morgan Stanley forecasts record $6.4 trillion in global M&A for 2026
#117544 · 09.07.2026
Business

Morgan Stanley forecasts record $6.4 trillion in global M&A for 2026

Global mergers and acquisitions are poised to reach an unprecedented $6.4 trillion by 2026, according to Morgan Stanley. Driven by surging corporate confidence and robust equity markets, this projection signals a decisive end to the stagnation that defined the post-pandemic period of high interest rates and volatility.

The momentum shifted visibly in the second quarter, with announced deal values climbing 64% compared to the previous year. Activity has been particularly concentrated in the software, utility, energy, and healthcare sectors. Analysts credit this resurgence to a more permissive regulatory environment under the Trump administration, which has alleviated long-standing fears regarding aggressive antitrust intervention.

Beyond regulatory shifts, private-equity firms are finally deploying significant capital. Morgan Stanley estimates that alternative asset managers currently hold roughly $4.3 trillion in dry powder ready for deployment. While potential interest-rate hikes pose a lingering risk to financing costs and leveraged buyouts, the current appetite for consolidation has shown remarkable resilience. Investors are now looking toward upcoming second-quarter bank earnings to confirm whether this dealmaking surge will sustain its current trajectory.

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