UK M&A Market Sidelines PE Funds as Record Values and Strategic Buys Dominate 2026

The UK's 2026 M&A market is surging past the £309.2 billion peak set in 2015, tracking toward £347 billion. First-half transactions hit £178.9 billion ($240 billion), with the top 10 deals accounting for 52% of total value. McCormick's £44.8 billion acquisition of Unilever's food business led the year's largest deals. PE funds' share dropped to 33.1%, the lowest since 2014. In the top deals, their slice shrank to just 15.1%. Strategic buyers dominate due to financing advantages: equity deals that PE firms can't replicate. EQT's £10.9 billion private equity buyout of Intertek underscores the trend.

The UK M&A shift reflects strategic buyers' growing advantage over PE funds, as corporate cash and equity options outpace traditional buyout financing. How will this reshape Europe's private equity landscape?