Global Markets Daily: European Strategic M&A—Accelerating Volumes, But Still a Bondholder-Friendly Backdrop

Research evidence excerpt

Global Markets Daily: European Strategic M&A—Accelerating Volumes, But Still a Bondholder-Friendly Backdrop

Economics Research

30 June 2026 | 10:33AM BST

Global Markets Daily: European Strategic M&A—Accelerating Volumes,

But Still a Bondholder-Friendly Backdrop

n European strategic M&A activity is off to a very strong start this year, with deals Sara Grut

+44(20)7774-8622 | sara.grut@gs.com

involving European targets, and acquisitions abroad by European firms, both Goldman Sachs International

running at year-to-date record highs. While global strategic M&A activity has

also strengthened, Europe’s share of global target volumes is sitting at the higher

end of its historical range at 25%.

n In this Global Markets Daily, we examine how European firms are using strategic

M&A to diversify and expand their businesses, and how that activity is being

funded. We find that intra-European activity is diverging from historical norms,

with a record number of deals above $10 billion and a notable concentration in

Financials. The funding mix also remains somewhat more bondholder-friendly at

the margin, with the greater use of cash-and-stock consideration reducing the

immediate cash (or, in some cases, debt) burden on acquirers’ balance sheets.

n We think the rise in European M&A reflects a combination of growing acceptance

that funding costs are likely to remain higher-for-longer, more attractive

valuations among smaller firms, the rising importance of scale, and a somewhat

more supportive regulatory backdrop in the EU. Taken together, these factors

suggest elevated European M&A activity is likely to persist. While M&A-related

bond issuance has remained limited so far, we think that could change given the

sheer scale of announced deal volumes, even if the current funding mix remains