M&A and private equity in Europe: the Q3 2026 picture
In the third quarter of 2026, European mergers and acquisitions (M&A) reached €206.85 billion across 3,090 deals, while private equity invested €72.13 billion across 1,524 transactions. Italy remained one of the leading markets, ranking second in Europe by M&A value with €43.26 billion. These are the headline figures from the latest edition of Andersen’s European Corporate and M&A Insights.
How did European M&A perform in Q3 2026?
The quarter closed with substantial overall value but less consistent activity. After a very strong spring, which peaked in April 2026 at €141.44 billion across 1,518 deals, both deal value and deal count fell month after month.
- July: €100.15 billion
- August: €79.71 billion
- September: €41.49 billion
Over the same period, monthly deal volume dropped from 1,530 to 834. September marked the lowest point of the past twelve months on both measures, a clear sign of lost momentum towards the end of the quarter. December 2025 offers a useful comparison: it recorded the most transactions (1,855) but a combined value of only €65.76 billion, confirming that value and volume do not necessarily move together.
Countries: the United Kingdom, Italy and Germany lead
Value was concentrated in a handful of markets. Together, the United Kingdom, Italy and Germany generated nearly 59% of European M&A value.
- United Kingdom: €47.14 billion, 542 deals
- Italy: €43.26 billion, 368 deals
- Germany: €31.06 billion, 396 deals
- France: €20.96 billion, 292 deals
- Poland: €15.98 billion, just 109 deals
- Spain: €11.68 billion, 229 deals
Sectors: Financials by value, Technology by volume
Financials led the quarter with €56.60 billion across 248 deals: more than a quarter of total value from only 8% of transactions. Industrials followed with €41.72 billion across 554 deals; together, the two sectors represented almost half of European M&A value. High Technology was the most active sector by deal count (601) while ranking third by value at €15.64 billion. Healthcare and Energy and Power each attracted around €15 billion, while Real Estate and Materials both exceeded €11 billion.
Private equity: a July peak, then an uneven quarter
European private equity investment reached €72.13 billion across 1,524 deals. July was the strongest month of the past twelve, at €41.80 billion across 632 deals. In August, invested value fell to €14.78 billion, with the lowest deal count of the year (414), before recovering to €18.74 billion across 434 deals in September.
Geographic concentration was even more pronounced than in M&A. The United Kingdom attracted €25.05 billion across 484 deals, around 35% of value and almost a third of all European PE transactions. Germany (€12.45 billion, 206 deals) and France (€12.42 billion, 122 deals) followed closely; together with the UK they accounted for around 69% of capital deployed. Ireland ranked fourth with €7.69 billion from only 36 deals, driven by a single large energy investment.
At sector level, Industrials, Technology and Healthcare together attracted €50.21 billion, almost 70% of the total. Industrials led by value (€21.38 billion, 333 deals), Technology was by far the most active sector (588 deals, €15.03 billion), and Healthcare followed with €13.80 billion across 174 deals.
Focus on Italy: more value from fewer deals
Italy is Europe’s second-largest M&A market by value, with €43.26 billion across 368 deals, up from €40.3 billion in the second quarter. The comparison with Germany is telling: Italy generated more value from fewer transactions. Once again, the driver was the financial sector, with €37.51 billion across 25 deals, roughly 87% of Italian M&A value (compared with €517.55 million across 30 deals in Q3 2025).
The most striking figure, however, concerns private equity: Italy recorded €5.20 billion across 99 deals, up from €412 million in the previous quarter. Much of this value came from Healthcare, with €4.56 billion across 11 deals. The untapped potential we highlighted in Q2 is starting to translate into actual investment, although it remains concentrated in a few large transactions.
What to expect in Q4 2026 and 2027
We expect activity to remain uneven in Q4 2026 and early 2027. Q3 showed that substantial capital is available, but the monthly decline in M&A and the sharp swings in private equity suggest that a sustained recovery in deal volume cannot yet be taken for granted. Three factors will be decisive:
- Interest rates and financing conditions. The ECB’s September rate increase, following a period of tighter lending standards, makes debt-funded transactions harder to structure, especially leveraged ones.
- Valuation alignment. Buyers and sellers will need to close the gap on pricing, weighing earnings quality and growth prospects against the cost of capital.
- Geopolitical and regulatory environment. Trade uncertainty and regulatory approvals should be addressed early, with thorough due diligence and realistic execution timelines.
On a more positive note, the ECB projects a modest improvement in euro area growth in 2027, which could support dealmaking if financing conditions stabilise.
Trends to watch
- AI beyond software: data centres, computing capacity, reliable power and cybersecurity.
- Energy infrastructure: electricity grids, storage and clean energy are attracting private capital.
- Private equity exits: sales of mature holdings and continuation vehicles to return liquidity to investors.
- Corporate carve-outs: portfolio reviews are creating opportunities for strategic buyers and funds.
Emerging markets to watch
Poland (€15.98 billion in M&A, driven by Retail and Financials), Portugal (€1.14 billion in M&A and €581 million in private equity, with Technology playing a central role), Bulgaria (€1.47 billion in M&A from only eight deals) and Lithuania (€463 million in M&A and €321 million in private equity, across Real Estate and Technology).
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