UBS Forecasts Surge in Asia M&A Activity with $1.2 Trillion Deal Volume Expected in 2026

Asia’s merger and acquisition market is poised for a significant expansion in 2026, with UBS projecting deal activity to total $1.2 trillion, up from $890 billion in 2024. This growth reflects a sustained recovery in corporate confidence, particularly in tech, energy, and financial services sectors, where strategic consolidation is accelerating. The firm notes that deal sizes have increased on average by 23% year-on-year, with transactions above $500 million accounting for 41% of the total volume in the last quarter of 2025. The rebound follows a period of subdued activity in 2023 and 2024, when global interest rate volatility and geopolitical uncertainty dampened dealmaking. Now, with central banks signaling a potential pivot toward rate cuts in early 2026, liquidity conditions are improving. UBS highlights that 68% of surveyed Asian corporates indicate plans to pursue acquisitions or joint ventures in the next 12 months, up from 45% in late 2024. Key markets expected to drive momentum include China, India, and Southeast Asia, with cross-border transactions involving Japanese and South Korean firms increasing by 37% in 2025. The technology sector alone accounted for $320 billion in M&A volume in 2025, with notable deals including a $45 billion acquisition of a semiconductor firm in Taiwan by a Singapore-based conglomerate and a $28 billion merger between two Indian fintech platforms. Market participants, including private equity firms and sovereign wealth funds, are adapting to tighter regulatory scrutiny in several jurisdictions, particularly in data-intensive industries. Despite this, UBS expects regulatory approvals to accelerate in 2026 due to enhanced coordination among Asian antitrust authorities.