(23 July 2025 – Australia) Mergers and acquisitions (M&A) deal value in Australia almost doubled in H1 2025 to A$91.6 billion year-on-year (YOY).
Australia is also exceeding global M&A deal value growth according to Bain & Co data that reveals an average global increase of 23 percent YOY compared to the first half of 2024.
Importantly the data is skewed by the mega A$36.4 billion Santos deal attributing 38 percent of all deal values for H1 2025 and far from closed as a result of FIRB, oil and FX risks. Deal value in H1 2021 was US$66 billion to 30 June compared to US$63 billion in H1 2025 while H1 2011 deal value was US$75 billion.
Most deals were confined to two sub-sectors – energy/natural resources and advanced manufacturing services. This includes the Soul Patts-Brickworks merger, Scape’s acquisition of Aveo and the Gold Fields takeover of Gold Road. Tech deals also featured prominently led by CoStar’s acquisition of Domain and Weir Group’s acquisition of Micromine.
“Despite strong growth, the first half was plagued by uncertainty. It wasn’t so long into the Trump presidency and the threat of tariffs that everyone was like a deer in headlights, not knowing quite what to do. As the threat receded, we saw an increase in M&A activity but we’re entering into another period of uncertainty which could impact deal-making” commented Bain & Co APAC Capital Markets and Corporate Banking Lead, John Fildes.
The Trump administration has committed to applying inhibitive tariffs of up to 200 percent on pharmaceuticals and drugs imported into the US and 50 percent tariffs on copper imports.
“In the second half M&A activity will go one of two ways. Companies will either look to build businesses that don’t touch tariffs, for example deals between Australia and Japan, or Australian domestic-only deals, or reorient their business to US domestic manufacturing.”