Wall Street’s Deal Frenzy Kicks Off 2026 with Billion-Dollar Moves

Wall Street began 2026 with strong M&A activity on January 6, including mid-market and mega deals. Private equity, armed with record dry powder and stable rates, gains confidence in consolidation. Surveys show 58% of middle-market leaders predict higher M&A volume, driven by resilience and valuations. Following 2025’s 68 deals over $10 billion, emphasis is on scaling, capabilities, and supply chains in global competition.

Banking Sector Consolidates: OceanFirst-Flushing $579M Merger

OceanFirst Financial Corp. and Flushing Financial Corp. agreed to an all-stock $579M merger. Flushing Bank merges into OceanFirst Bank, creating $23B in assets, $17B loans, $18B deposits, and 71 branches in NJ, Long Island, NY. Includes $225M equity from Warburg Pincus affiliates. CEO Christopher Maher noted complementary credits and community ties. Maher stays CEO; John Buran as non-executive Chairman. Board expands with reps from both and Warburg. Closes Q2 2026 pending approvals, enhancing scale in relationship banking with better products.

Private Equity Power Plays: Hg’s $6.4B OneStream Take-Private

Hg bought OneStream for $6.4B at $24/share (31% premium) to privatize and accelerate innovation. KKR, Warburg Pincus bid up to $2B for TPG’s SE Asia schools, seeking stable emerging-market revenues. Highlights PE’s deployment of trillions for valuable assets amid uncertainties.

Tech, Infrastructure Acquisitions Heat Up

SoftBank acquired DigitalBridge for $4B to boost AI digital infrastructure amid cloud demand. ServiceNow bought Armis for $7.75B cash to enhance AI cybersecurity. Marvell purchased XConn for $540M to aid AI infrastructure. Bentley acquired Talon Aerolytics and Pointivo tech for digital twins, AI in engineering analytics.

Healthcare, Manufacturing: Strategic Buys for Growth

Sanofi acquired Dynavax for $2.2B to strengthen vaccine pipeline post-setbacks. Resonetics bought Med-Ally assets/IP for bioelectronics in neuromodulation. Steel Dynamics, SGH bid $8.8B for BlueScope Steel, eyeing Ohio North Star mill. Core & Main to acquire Pioneer Supply for water/drainage distribution expansion.

Energy, Consumer Goods: Supply Chain Security Takes Center Stage

BP sold most Castrol lubricants to Stonepeak for $8B to fund renewables, bolster operations. AB InBev repurchased U.S. metal container minority stake for $3B for stability. Cable One gained full Mega Broadband ownership (undisclosed) for market broadband growth. Sapporo sold real-estate to KKR-PAG for $3B to streamline. TPG took majority Quarterra stake from Lennar, committing $1B more for multifamily real estate.

Wealth Management and Advisory Firms Join Forces

Cerity Partners merged with Austin Private Wealth for Texas expansion, holistic services. Mauldin & Jenkins merged with Prinzo Group for governmental advisory growth. Huntington Securities, Capstone acquired three Janney Montgomery Scott units for investment banking boost. Global Risk Consultants bought Aon’s U.S. field services for safety inspections. Innovative Connections merged with MSBCoach for leadership coaching expansion. Main Street Capital invested $50.8M in UBM ParentCo, exited Mystic Logistics with $23.8M gain.

Leisure and Niche Markets See Targeted Buys

Heritage Golf acquired Southern Hills Plantation Club (Brooksville, FL) for premium golf portfolio. PMG bought Digital Voices for global influencer marketing. Comerica shareholders approved $10.9B Fifth Third merger for regional banking strength.

January 6 deals signal strategic realignments via M&A for economic, tech, regulatory navigation. Growing pipelines indicate sustained growth despite antitrust scrutiny.