Australia together with South Korea and Singapore recorded a double-digit contraction in merger and acquisitions (M&A) activity, according to new analysis released by intelligence and productivity platform, GlobaData.
The analysis said the total number of deals, private equity and venture capital announced across the Asia-Pacific region year on year decreased by around 11% between January and July, “reflecting a broad-based cooling in deal-making appetite”.
Commenting on the findings, GlobalData lead analyst, Aurojyoti Bose said the overall contraction underscores a more selective deal environment across the region pointing to a more cautious deal-making stance amid tighter financing conditions, where investors and corporates have continued to prioritize discipline, and clearer visibility on earnings and exit pathways.
An analysis of GlobalData’s Financial Deals Database reveals that by deal type, the region’s performance was defined by a pronounced pullback in M&A deal volume. outweighing modest growth in venture capital. It said private equity deal volume also fell significantly.
“The total number of M&A deals announced in the APAC region fell by around 22% year on year during January-July 2026, making it the primary driver of the regional slowdown. whereas private equity deal volume declined by around 25%,” it said.
“Meanwhile, venture capital activity showcased resilience with the deal volume increasing by 3% year on year, indicating continued support for innovation-led themes albeit within a more conservative approach.
“The divergence among deal types suggests that risk capital is increasingly flowing toward selective growth opportunities,” Bose said. “Lower M&A volumes indicate that boards may be delaying acquisitions and focusing instead on operational priorities. Meanwhile, the retreat in private equity activity signals continued pressure on leveraged deal economics, longer diligence cycles, and greater scrutiny.”
The analysis said market-level performance across the APAC region was mixed, with China and India acting as relative stabilisers. China posted 6% YoY growth, standing out against the regional downturn and reinforcing its role as a key engine of APAC deal flow. India also recorded marginal 1% growth. However, these gains were insufficient to offset weakness in several other major markets.
“Japan saw the sharpest decline (38%), exerting significant downward pressure on overall APAC activity. Australia, South Korea, and Singapore each recorded double-digit contractions, indicating a region-wide recalibration in corporate dealmaking,” Bose said.