Transatlantic mergers and acquisitions are booming, as companies block out the rising levels of geopolitical noise to chase their dream deals.
The value of cross-border M&A between the US and Europe has risen more than 140% this year to roughly $165 billion, data compiled by Bloomberg show. It was the second-biggest quarter on record for such transactions in the three months through March, the data show.
Those figures would be supercharged by a combination of Deutsche Telekom AG and its American arm T-Mobile US Inc. Bloomberg News reported Tuesday that the carriers are discussing the creation of a new holding company that would make a stock bid for shares of both Deutsche Telekom and T-Mobile. It would be the biggest public M&A deal on record if it goes ahead.
Deutsche Telekom and T-Mobile have considered a potential transaction on-and-off for years, and a move now would reflect increased confidence in boardrooms on both sides of the Atlantic about pursuing deals previously deemed too ambitious or likely to get scuppered by regulators.
Jay Hofmann, head of North American M&A at JPMorgan Chase & Co., said recently that companies feel that the time is right to push ahead with "industry-defining" mergers despite operating under higher levels of uncertainty and volatility.
There has been evidence of this across sectors in 2026.
In one of the year's biggest deals, London-listed Unilever Plc agreed to combine its food business with US spice maker McCormick & Co. in a $44.8 billion tie-up to create a global seasonings, sauces and condiments giant.
Other standout transactions include the agreed takeover of UK asset manager Schroders Plc by US peer Nuveen for £9.9 billion ($13.4 billion), and Banco Santander SA's planned purchase of Webster Financial Corp. for $12 billion.
Elsewhere, Gilead Sciences Inc. struck an up to $5 billion acquisition of German biotech Tubulis GmbH; and Esco Technologies announced it will buy UK-based Megger Group, a maker of electrical testing instruments, for around $2.35 billionBloomberg Terminal.
Theses deals come at a time of escalating tensions between the administration of US President Donald Trump and European leaders, including German Chancellor Friedrich Merz, over issues such as tariffs and the war in Iran that are impacting the global economy.
This could be significant for Deutsche Telekom and T-Mobile, with a combination likely to face a number of hurdles. The companies may need to make significant commitments to their respective home markets and it's also unclear whether the German government, which holds a stake in Deutsche Telekom, would bless any deal.