Whilst deal activity remained robust in 2025, the third quarter saw a notable slowdown, with a 33.9% reduction year-on-year. This is a slight fall year-on-year but in line with the five-year average of 55%. The drinks sector continued to represent a significant share of overall deal activity, accounting for 26.3% of transaction volumes. Nevertheless, global tensions, including conflicts in Europe and the Middle East, recent developments in South America, and emerging US tariffs, continue to add complexity and uncertainty for the UK market. As interest rates gradually ease but inflationary pressures remain, it predicts M&A activity to remain selective and strategically driven, with deal values and volumes broadly in line with 2025 levels.