European M&A demonstrated greater resilience than other major markets in the second quarter of 2026, with deal value falling just 6.4% quarter-over-quarter to $344 billion, compared to a 24.3% decline in North America, according to PitchBook’s Q2 2026 Global M&A Report. Deal count in Europe actually rose 0.9% to 5,061, while North American deal count fell an estimated 7.3%.

This resilience has been building over the past year as both sponsors and corporate acquirers target Europe for higher returns. The region’s fragmented market, need for localized expertise, and lower entry multiples relative to North America make it attractive. Additionally, large family-owned businesses in Italy and Spain remain relatively untapped by private equity.

The B2B sector was Europe’s strongest, with deal value surging 35.6% quarter-over-quarter to $129 billion. Two megadeals accounted for roughly a third of that total: Finnish elevator maker Kone, alongside Advent International and Cinven, agreed to acquire German rival TK Elevator for $34.3 billion in April; and EQT agreed to take product-testing firm Intertek private for $14.6 billion at a 62% premium in June.

In June, the European Central Bank became the first G7 central bank to raise interest rates, responding to an energy shock tied to the Middle East conflict. The sustainability of Europe’s M&A resilience through year-end will depend on how monetary policy and geopolitical uncertainty evolve.