Mega deal slump drags APAC deal value down 6.3%

Only four deals above $5b were logged in Q1 after 6 in the same 2025 period.

Asia-Pacific (APAC, ex. Japan) investment banking activity began the year with mixed results as high-value “mega deals” slowed despite a rise in mid-market transactions.

According to the first-quarter (Q1 2026) review from the London Stock Exchange Group (LSEG) Deals Intelligence team, total deal-making value fell 6.3% year-on-year (YoY) to $212.5b. 

Whilst the overall value declined, the actual number of deals grew by 3.4%. This growth was fuelled by the mid-market, where transactions worth less than $1b saw a 9.1% increase in value. 

The decline in total volume is largely attributed to a cooling of the mega deal sector. Only four deals valued over $5b were recorded in the first Q1 2026, totalling $66.5b. 

This is a drop from the six mega deals worth $89.1b seen during the same period in 2025. 

Mergers and acquisitions targeting companies specifically within the Asia Pacific region also faced a sharp downturn, falling 31.1% to $143.4b.

Despite the broader slowdown, the high-technology sector reached a historic milestone. 

Tech-related deal-making tripled compared to last year, reaching $66b. 

This represents 31.1% of all regional activity and marks the highest first-quarter total for the sector since tracking began in 1980. 

Other sectors showing significant growth included Materials, which rose 96.9% to $28.7b, and Industrials, which increased 64.8% to $28.3b.

Private equity activity also saw a substantial surge during the first three months of the year. 

The value of private equity-backed deals rose 74.9% to $31.9b, whilst the total number of these specific transactions more than doubled, increasing by 104.6% YoY.