Cross-border mergers and acquisitions are expected to remain robust in the second half of 2026, with artificial intelligence and the energy sector emerging as the primary engines of dealmaking, according to a new report. The findings signal continued momentum for global corporate consolidation despite a mixed macroeconomic backdrop, as firms race to secure strategic advantages in transformative industries.

Why the M&A Momentum Is Expected to Persist

The report points to a convergence of factors that are keeping cross-border deal flow elevated. Companies are increasingly looking beyond their domestic markets to acquire technologies, talent, and market access, particularly in sectors where innovation cycles are shortening. This strategic imperative is overriding traditional concerns about regulatory hurdles and geopolitical friction.

Moreover, the second half of 2026 is shaping up to be a period of opportunity, with many corporations holding strong balance sheets and cash reserves accumulated over recent years. Private equity firms and strategic buyers alike are deploying capital into cross-border targets, viewing these transactions as essential to long-term competitiveness rather than optional growth plays.

AI: The Transformative Catalyst for Global Deals

Artificial intelligence stands out as the single most influential driver of cross-border M&A activity. The report highlights that AI-related acquisitions are not limited to software firms but span across industries, including healthcare, finance, manufacturing, and logistics. Buyers are aggressively pursuing startups and established players that possess proprietary algorithms, data sets, or specialized chip designs.

This surge is fueled by the need to integrate AI capabilities into existing operations quickly, as well as the fear of being left behind by more agile compe*****s. Cross-border deals allow acquirers to tap into innovation hubs outside their home regions, from silicon valleys in Asia to emerging tech clusters in Europe and the Middle East. The report notes that valuations for AI-focused targets remain elevated, but buyers are willing to pay premiums for scarcity and strategic fit.

Key AI Deal Dynamics

  • Technology talent acquisition: Many deals are effectively talent grabs, with acquirers paying for engineering teams rather than just products.
  • Data access and localization: Acquiring firms in foreign markets provides access to localized data, which is critical for training AI models.
  • Regulatory navigation: Some deals are structured to gain favorable regulatory treatment by establishing local presence through M&A.

Energy Sector: A New Frontline for Cross-Border Investment

The energy sector is the other major pillar keeping cross-border M&A active in 2026. The report identifies a broad shift toward renewable energy, grid modernization, and energy storage as core drivers of dealmaking. Traditional oil and gas companies are diversifying into cleaner technologies, while utilities and independent power producers are consolidating to achieve scale and reduce capital costs.

Cross-border transactions in energy are particularly prominent in regions with ambitious climate targets, such as Europe and parts of Asia. Companies are acquiring solar, wind, and battery storage developers abroad to build integrated portfolios that can deliver reliable, low-carbon power. Additionally, the push for energy security has led to increased investment in critical minerals and supply chain resilience, further boosting M&A activity.

What’s Fueling Energy M&A

  • Policy tailwinds: Government incentives and subsidies for clean energy are making acquisitions more financially attractive.
  • Infrastructure gaps: Many countries lack adequate grid capacity, prompting foreign investors to acquire and upgrade existing assets.
  • Commodity price volatility: Uncertainties in oil and gas prices are pushing companies to hedge through diversified energy portfolios.

Regional Trends and Sectoral Shifts

Geographically, the report indicates that activity is broadening beyond traditional corridors. While US-European deals remain significant, there is a notable uptick in transactions involving Asia-Pacific and Middle Eastern buyers. Sovereign wealth funds and state-linked entities are increasingly participating in cross-border M&A, especially in ports, data centers, and energy infrastructure.

At the same time, the technology and industrial sectors are witnessing a wave of consolidation as companies seek to build end-to-end capabilities. For example, semiconductor manufacturers are acquiring equipment suppliers, and software firms are buying cloud infrastructure providers. These vertical integrations are often cross-border because the most suitable assets are located in different countries, reinforcing the global nature of current M&A activity.

Key Takeaways for Investors and Market Watchers

The outlook for cross-border M&A in the second half of 2026 remains constructive, anchored by the dual engines of AI and energy. Companies that can successfully execute cross-border transactions stand to gain significant competitive advantages, but they must also navigate complex regulatory environments and geopolitical sensitivities. For investors, the report suggests that sectors tied to AI and energy will continue to see premium valuations and active deal flow.

As the year progresses, market participants will closely watch how antitrust authorities and foreign investment review boards respond to the rising tide of cross-border deals. While challenges remain, the underlying strategic drivers are strong enough to keep M&A activity lively well into the next year.

“AI and energy are not just sectors — they are the defining forces reshaping global capital flows and corporate strategy in 2026.”

In summary, the report’s findings underscore that cross-border M&A is entering a phase of sustained strength, driven by transformative technologies and the global energy transition. For companies and investors alike, understanding these trends will be crucial to capitalizing on the opportunities ahead.