"This Year’s M&A Market to Be Driven by Large AI-Centered Deals"

Samil PwC Releases M&A Market Outlook Report
AI Investment "Supercycle"... Polarization Expected in M&A as Well

This year, large-scale transactions centered around artificial intelligence (AI) are expected to lead the mergers and acquisitions (M&A) market. Rather than a widespread increase in the number of deals, it is anticipated that the market structure will be reshaped by a rise in large-scale transactions driven by strategic objectives.

On March 16, Samil PwC released its report, "2026 M&A Market Outlook," which included this analysis.

According to the report, the total value of global M&A transactions last year reached approximately $3.5217 trillion (about KRW 5,011 trillion, based on the average annual exchange rate), up 36% from the previous year. The number of deals stood at 47,827, marking only a 1% increase year-on-year. However, there was a significant rise in large-scale transactions valued at over $5 billion, which drove the overall market recovery. In particular, the report found that large-scale deals aimed at securing AI competitiveness served as a key driving force behind the market rebound, resulting in pronounced polarization within the market.

In the domestic market, the number of M&A deals last year totaled 1,657, a 6% decrease from the previous year. Despite this, the transaction value reached $78.1 billion (approximately KRW 11.0928 trillion), representing a 25% increase in won terms. Transactions were active mainly in the energy, industrials, financial, and consumer sectors, focused on restructuring and strategic asset reorganization. However, the report also noted that the pace of recovery was limited compared to the global market due to continued capital concentration in the United States and the high exchange rate environment. Across the Asia-Pacific region as a whole, the number of deals increased by only 3% and total transaction value by 10% year-on-year, both falling short of the global average growth rate.

The report identified "AI investment supercycle" and "K-curve (polarization)" as the core keywords for this year's M&A market. It analyzed that, as large-scale investments in AI continue, companies will seek to proactively secure key technologies and infrastructure through M&A. The report stated, "As AI transitions into a core infrastructure across industries, there will be a reorganization of the value chain encompassing power infrastructure, data centers, semiconductors, and software. We expect strategic M&A demand to rise sharply, especially among companies with both technological competitiveness and capital strength." Conversely, the report predicted that mid- and small-sized transactions with low strategic clarity will remain sluggish, and the market structure will become increasingly centered on large-scale, strategic deals.

In this environment, the report suggests the following M&A strategies for this year: expanding new growth businesses based on technology and AI, establishing a decision-making system focused on large-scale and strategic deals, and continuously rebalancing portfolios. It recommends prioritizing large-scale transactions that allow for focused allocation of capital and execution capabilities, while securing growth momentum through technologies, infrastructure, and platforms directly linked to AI transformation. The report also emphasizes the need to restructure overall business operations by divesting non-core and low-profit businesses.

Additionally, the report analyzed global and domestic M&A trends and this year's outlook across six industries: consumer, energy/utilities and materials, financial, healthcare, industrials and automotive, and IT/telecommunications and media. Detailed content from the report is available on the Samil PwC website.

Min Joonsun, Head of Deals at Samil PwC, stated, "With AI becoming a core variable in corporate value, companies with capital strength and execution capabilities will use M&A to secure a leading position within the AI value chain, while those lacking these advantages are likely to face restructuring and portfolio reorganization. It is more important than ever to establish a decision-making system that enables rapid execution of large-scale, strategic deals, alongside targeted investments based on choice and concentration throughout the AI supply chain."

This content was produced with the assistance of AI translation services.