Cross-border M&A activity is likely to remain strong in 2H 2026, with technology, especially artificial intelligence (AI), energy and supply-chain security emerging as key drivers, according to a report by JPMorgan. The report stated that cross-border deal activity surged 63 per cent YoY to USD 820 billion in 1H 2026, accounting for 26 per cent of total M&A volume. Activity was concentrated in larger deals, with 17 of the 48 mega-deals being cross-border and contributing 37 per cent of total cross-border volume. The US and UK remain key corridors, with six of the 10 largest deals being transatlantic. Geopolitical tensions and protectionist policies are widening valuation gaps and reshaping deal corridors. AI has emerged as a key driver of deal activity and capital formation in 2026, with four of the top five global deals in 1H 2026 linked to AI. AI-linked stake sales totalled USD 370 billion during the first half. Six mega-funding rounds accounted for ~40 per cent of minority investment volume and 8 per cent of 1H 2026 total deal volume. The report noted that 2H 2026 cross-border activity is likely to be strong and increasingly related to technological sovereignty, energy resilience and supply-chain friendshoring.