Mizuho’s Michal Katz Predicts Strong Merger Boom Through 2026

Post by : Saif

The global mergers and acquisitions (M&A) market is showing powerful momentum, and according to Michal Katz, the head of investment and corporate banking at Mizuho Americas, this strength is not slowing down anytime soon. Speaking at the Reuters NEXT conference in New York, she explained why the business world is experiencing such an active dealmaking environment in 2025—and why these conditions are likely to continue into 2026.

This year has already seen a wave of very large deals, known as megadeals. These are deals worth more than $10 billion, and their total value has more than doubled compared to last year, reaching about $1.3 trillion. Some of the biggest examples include an $85 billion rail deal, a $40 billion data center transaction, and the largest leveraged buyout ever recorded—the $55 billion take-private purchase of Electronic Arts. These massive moves show how determined companies are to grow and reshape themselves.

Katz said that many CEOs feel pressure to expand because older business models are being disrupted by artificial intelligence. AI is changing how companies operate, how they serve customers, and how they plan for the future. To stay competitive, leaders want to make sure their companies are ready for long-term changes. This has created strong “pent-up demand” for mergers and purchases, as firms that waited during uncertain years now feel ready to act.

She also believes that the next year will not only bring more megadeals but also many medium-sized deals under $10 billion. These smaller transactions are important because they allow private-equity firms to stay active. Many private-equity groups hold older assets that they now want to sell, and the current market gives them a chance to do so with good returns.

Another major trend Katz highlighted is the rise of shareholder activism. In 2025, investors have been more vocal than ever, pushing companies to make bold decisions, sell divisions, or pursue mergers. This pressure for "event-driven exits" often leads to more deals and strategic changes.

While technology and AI companies have dominated the stock market this year, Katz pointed out that healthcare is becoming an increasingly busy sector for acquisitions. Big deals like Pfizer buying Metsera, Abbott Labs acquiring Exact Sciences, and active moves by Thermo Fisher and Novartis show that major players in healthcare are also preparing for future growth. This shift suggests that M&A is becoming more spread out across different industries instead of staying concentrated in technology.

The private credit market, however, has faced some stress. A few well-known companies recently went bankrupt, raising concerns about lending practices. Katz described these cases as “idiosyncratic,” meaning they are unusual and not signs of a wider collapse. Still, lenders and investors are becoming more careful. They are demanding clearer documentation, better transparency, and safer structures for loans. This tighter discipline may help strengthen the overall market by reducing risky decisions.

Overall, Katz’s message at the conference was clear: the conditions that made 2025 a strong year for dealmaking—growth ambitions, AI-driven change, pressure from investors, and private-equity activity—are likely to support an active M&A market into 2026. As businesses look ahead, many are preparing for long-term investments that will shape their industries for years to come.

With technology reshaping global markets and companies racing to keep up, the next year may bring even more strategic moves, surprising partnerships, and industry-changing mergers.

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