Shareholder activists have never been busier, and companies are responding by accelerating divestment plans and spin-off activity.

Last year shareholder activism climbed to record highs, with Barclays tracking an unprecedented 255 campaigns in 2025 as a combination of market volatility, and supportive debt financing markets provided ideal operating conditions for activist firms.

A catalyst for M&A

The increase in activist campaigns has been a significant development for M&A markets. Activists are not only pushing companies to change senior management, offer up board seats or increase dividend payments and share buybacks. They are also placing M&A strategies at the centre of their campaigns. M&A demands are now the most common activist campaign objectives, accounting for 44% campaigns last year, according to Barclays.

The prominence of M&A-driven campaigns accelerated through the course of the year as broader deal activity gradually picked up through the second half. For H2 2025 M&A demands were the primary driver for 54% of activist interventions, and in the fourth quarter M&A was a centre of 61% of campaigns, making Q4 2025 the busiest quarter for M&A related campaigns in five years.

Such has been the level of M&A-focused shareholder activism that Barclays describes activism as a “shadow dealmaker” driving increasing volumes of corporate sales and divestitures.

Examples of M&A deals instigated by activists are numerous. BP, for example, responded to a campaign led by shareholder activist Elliot to bring down costs and streamline operations with the launch of a US$20 billion divestment programme that has led to the sales of its Castrol Lubricants business to private markets firm Stonepeak for US$10.1 billion and the exit of its US onshore wind power business to LS Power.

Large corporates – like BP – have proven to be particularly fruitful targets for M&A-focused activist campaigns.

Lines blur between private equity and activists 

Private equity firms will regularly benefit from the deals that are pushed out to market by activists, and as M&A-focused shareholder activism increases the lines between pure play financial sponsors ad shareholder activists are blurring.

More activists and private equity firms are working together to get M&A deals over the line. Advent International and activist investor Corvex teamed up to lead a US$1.3 billion deal for head hunter Heidrick & Struggles, and activist firm Trian Partners and venture capital investor General Catalyst joined forces to acquire asset manager Janus Henderson in a US$7.4 billion take-private.

Activists and buyout firms are also borrowing from each other’s playbooks. KKR, for example, took a 12% stake and two board seats in medical products distributor Henry Schein. KKR is now the largest non-index fund shareholder in the business, and is working with Henry Schein to improve operations.

Nelson Peltz, meanwhile, the head of Trian Partners, has signalled that his firm is open to pursuing more outright buyouts in the future following the Janus Henderson acquisition.

Private equity and activist interests, however, don’t always align. Activists will campaign for better pricing and terms when bids come in, and will move to terminate M&A if they believe it doesn’t add value. Digital services company TaskUs, for example, called off plans to pursue a take-private deal following an activist campaign led by Think Investments and Murchison.

Shareholder activists are expected to keep stimulating M&A deals through the course of 2026… but they may scuttle a few transactions too.