M&A market heating up! Jardine Matheson poised to become the top European target in 2026, buyers casting a wide net to find potential targets.

With the strong start of merger and acquisition activities this year, mining giant Glencore is seen by M&A experts as the most likely European enterprise to be acquired in 2026. In an informal survey conducted by the media this month among 30 risk arbitrage trading desks, traders, and analysts, Glencore, currently in talks with Rio Tinto plc Sponsored ADR (RIO.US) for a merger to create the world's largest mining company, was mentioned 8 times. In addition, the survey results show that companies from a wide range of industries are appearing on the list, reflecting the strengthening global economic momentum and potential acquirers looking towards broader sectors. French biotechnology company Abivax SA was mentioned 5 times. The company's stock price surged over 1600% in 2025 due to potential acquisition prospects and positive drug trial results. BP p.l.c. Sponsored ADR (BP.US), German online food delivery service platform Delivery Hero SE, British low-cost airline EasyJet Plc, and British real estate developer Great Portland Estates were each mentioned 4 times. Respondents also indicated that the global M&A environment is becoming increasingly active. Data shows that as of January 23 this year, the total value of announced M&A deals globally has exceeded $63 billion, more than three times the amount recorded in the same period in 2025. Joseph Rot, Chief Strategy Group Head at Neuberger Berman, stated, "M&A activity is still in the early stages of recovery. Compared to previous years, which leaned towards specific industries, the current outlook seems to be forming a very healthy, broad-ranging, cross-industry, globalized M&A environment. The current U.S. government is supportive of transactions - previous resistance could potentially turn into assistance." Some of the popular European M&A targets revealed in the survey include the ongoing negotiations between Rio Tinto plc Sponsored ADR and Glencore, which are the closest they have been to reaching an agreement in decades. Glencore CEO Gary Nagle called it the most obvious merger in the mining sector. In the current wave of copper industry mergers, companies like Anglo American and Teck Resources have already joined forces. Nicholas Malmurk, Co-Head of Special Situations at Square Global Markets, stated, "Without a major acquisition, Rio Tinto plc Sponsored ADR cannot compete at the top level of the copper industry, and with Anglo American and Teck Resources becoming harder to reach, the available targets are rapidly decreasing." Rio Tinto plc Sponsored ADR and Glencore had negotiations in 2024 but terminated due to a lack of agreement on valuation. Since then, Rio Tinto plc Sponsored ADR has changed its CEO, while Glencore has been working to highlight its copper mine growth prospects. The current negotiations between Rio Tinto plc Sponsored ADR and Glencore come at a time when copper prices are soaring. Driven by a series of mine shutdowns and the stockpiling of copper mines in response to potential tariffs imposed by the Trump administration, as well as many investors betting on the booming artificial intelligence industry driving a surge in copper demand, LME copper futures have exceeded $13,000 per ton. This has heightened concerns among mining executives and investors that the expected surge in demand from the booming artificial intelligence and defense spending could lead to a tight supply of copper in the future. For Rio Tinto plc Sponsored ADR, a merger with Glencore would significantly increase its copper output and give it a stake in the Collahuasi copper mine in Chile, one of the richest mineral deposits in the world and a long-desired asset for Rio Tinto plc Sponsored ADR. The high popularity of Glencore among M&A experts indicates that London-listed companies remain one of the most favored acquisition targets - recent cases include Zurich Insurance Group's tender offer for British insurance company Beazley Plc, as its undervaluation continues to attract bidders. Based on valuation measures using profit expectations, the FTSE 100 index is discounted by about 15% compared to the STOXX 50 index in Europe and about 40% compared to the S&P 500 index. Patrick Sack, Head of Public M&A at White & Case LLP in the UK, stated that many London-listed companies are "extremely attractive" to bidders and risk arbitrageurs due to "favorable valuation conditions, clear acquisition rules, and the support of M&A regulation and Foreign Direct Investment (FDI) systems." Discounts relative to European and American peers in the UK benchmark index Data shows that as of September 30 last year, BP p.l.c. Sponsored ADR's cash reserves accounted for approximately 40% of its market value. Graham Simpson of Canaccord Genuity Research stated that this means the oil giant "may attract potential buyers' attention." Emmanuel Valavanis, Equity Sales Specialist at London Forte Securities, stated that Great Portland Estates is constrained by its real estate investment trust structure, limiting its ability to retain earnings and reinvest. He stated: "If privately held or part of a larger group, these constraints may be lifted, first and foremost resulting in improved operational efficiency." Simpson also pointed out that this property developer is a potential "iconic acquisition target" for sovereign wealth funds seeking top-notch real estate. At the same time, Simpson stated that EasyJet's share price is significantly discounted compared to competitors like Ryanair and Wizz Air Holdings, making the airline "extremely attractive to airline acquirers with substantial synergies potential." He added that the company has been a "classic long-term value trap, and it is now time to relieve shareholders of their predicament." The attractiveness of Abivax comes from its leading candidate drug obefazimod, which is being studied for the treatment of an inflammatory bowel disease. Recent reports have indicated interest from companies such as Astrazeneca PLC Sponsored ADR (AZN.US) and Eli Lilly (LLY.US), causing significant fluctuations in its stock price. Kepler Cheuvreux Bank raised the target price for the company earlier this month, stating that Abivax is a "highly attractive late-stage biotech acquisition target."