South Africa’s mergers and acquisitions market lost momentum in the first half of 2026, as geopolitical tensions from the Iran war and weak domestic economic growth caused a sharp decline in corporate deal-making. Data from DealMakers Africa reveals that while deal value reached R311 billion, this figure was heavily skewed by a few mega-deals, masking a broader slowdown in activity. Transaction volumes dropped by 10 percent year-on-year, with a 75 percent collapse in black economic empowerment deals. Amidst this uncertainty, many listed firms opted to return capital to shareholders through share repurchases, totaling R122.9 billion, rather than pursuing acquisitions. Analysts expect this cautious environment to persist through the second half of the year unless geopolitical conditions improve.