Global M&A trends in energy, utilities, and resources

Power and utilities dealmaking is being shaped by a simple constraint: demand is rising faster than many markets can add capacity. Data centres, electrification, and industrial growth are increasing the need for reliable power, while permitting delays, interconnection queues, and grid bottlenecks are slowing the supply response. Buyers are looking beyond any single technology and focusing on assets that can deliver capacity with more certainty.  

With speed becoming more important, this is prompting investors to place a premium on operating assets, brownfield generation, grid-connected platforms, and behind-the-meter solutions. The increasing value of transmission and distribution infrastructure is illustrated by German state-owned KfW's investment in TenneT Germany, which will help fund major grid expansion projects needed to connect renewable generation and support growing electricity demand, and ENGIE’s acquisition of UK Power Networks that will expand ENGIE’s position in regulated electricity networks. 

Regional priorities vary, but the focus on deliverable capacity is consistent.

• In North America, dispatchable assets and regulated utility platforms remain attractive as data centre demand and affordability pressures rise. 
• In Europe, grid investment, utility consolidation, and repricing in renewables are shaping activity. In the Middle East and Africa, demand growth is creating opportunities across power, water, transmission, and distribution.
• Across Asia Pacific, Japan remains focused on stable power supply, grid readiness, storage, and LNG-linked generation, while South Korea is pursuing nuclear and renewable deployment as LNG plays a bridging role. 

For dealmakers, the priority is shifting from future potential to deliverable capacity. Assets with grid access, clear cost recovery, and a credible route to meeting demand are likely to command the strongest interest.

Oil and gas M&A remains active, but buyers are becoming more selective. Megadeals lifted sector value in early 2026, including Devon Energy’s $21.6bn merger with Coterra Energy, Transocean’s $5.7bn merger with Valaris, and Mitsubishi Corporation’s $5.2bn acquisition of Aethon III. Beyond these large transactions, the broader market remains selective, with the forward pipeline tilting toward mid-cap platform building and infrastructure-linked transactions. Investors continue to favour assets with resilient cash flows, strong basin positions, and infrastructure connectivity.

Geopolitical instability and commodity price volatility are making valuation harder, particularly in the mid-market. At the same time, these pressures are reinforcing the long-term value of assets that can support energy security. Gas and LNG remain central to that thesis as buyers look for integrated positions across upstream supply, midstream infrastructure, and export capacity.

In North America, activity remains concentrated around gas basins, shale consolidation, midstream connections, and LNG-linked value chains. Japanese and other international investors remain active where transactions improve long-term supply optionality and portfolio resilience, rather than simply adding commodity exposure. That helps explain continued interest in LNG- and infrastructure-linked deals, particularly where buyers can secure access across the value chain.

Midstream infrastructure is also attracting capital tied to data centres, domestic distribution, and LNG exports. Joint ventures and risk-sharing structures are likely to remain important as investors navigate valuation gaps and long-dated infrastructure needs. Across Europe and the North Sea basin, portfolio adjustments and single-asset trades are continuing, although buyer selectivity is slowing execution. In Africa, Mozambique LNG and emerging basins such as Namibia are attracting renewed interest as buyers diversify supply exposure.

For dealmakers, the oil and gas M&A thesis is shifting from volume growth to resilience. The strongest opportunities will be those that combine disciplined capital deployment with infrastructure access, supply security, and a credible path to long-term demand.

Mining and metals M&A saw a sharp drop in activity during the first half of 2026, as valuation gaps, permitting uncertainty, and the cross-border nature of many transactions made deals harder to execute. Questions around future commodity prices have also slowed decision-making, particularly for earlier-stage assets where financing and development risk remain high.

We expect activity to pick up in the second half of 2026 and into 2027, provided the geopolitical backdrop stabilises and there are no further macroeconomic or commodity-price shocks. Buyer interest remains strongest in minerals tied to energy security, electrification, and digital infrastructure, particularly where assets offer scale, processing access, or a clear route to market.

Gold is expected to continue anchoring deal activity as geopolitical fragmentation and defence rearmament reinforce the commodity’s safe-haven role. Strong prices, access to capital, and the need to extend mine life in more politically stable markets are supporting continued M&A interest. Zijin Mining’s proposed $4bn acquisition of Allied Gold illustrates buyer appetite for gold assets with scale and growth potential in lower-risk markets.

Copper remains a priority as electrification, grid expansion, and data centre infrastructure increase demand for reliable supply. With potential supply deficits emerging as early as 2027, consolidation around high-quality copper resources is likely to remain active. Eldorado Gold’s $3.8bn acquisition of Foran Mining is intended to increase copper exposure, add exploration potential, and create greater resilience through a larger gold and copper company. Hudbay Minerals’ proposed $1.1bn acquisition of Arizona Sonoran Copper is expected to increase copper production, expand its growth pipeline in the US, and benefit from increasing demand for US-produced critical minerals. These deals, and others in the sector, point to buyer appetite for copper resources, particularly in lower-risk markets.

Rare earths and other critical minerals add another layer of complexity. Buyers, particularly in Asia Pacific, are looking at not only upstream resource exposure but also processing capacity, offtake, and supply chain resilience. Government support, export controls, and national security priorities are likely to influence how these transactions are financed and structured.

Capital availability will also shape how mining and metals deals are financed and structured. Major miners have the balance sheet strength to pursue selective acquisitions, but boards remain disciplined as they weigh buybacks, dividends, project development, and M&A. For earlier-stage assets, financing structures are likely to matter as much as strategy. Joint ventures, earn-ins, streaming, royalty financing, and public-sector support can help bridge the gap between discovery and final investment decision, particularly where conventional project debt is harder to secure. This is likely to be especially relevant for rare earths, copper-adjacent processing, and other assets for which offtake, permitting, and government support can help turn strategic demand into bankable transactions.

For dealmakers, assets with well-understood permitting requirements, processing access, and buyer demand are more likely to get done. In this market, resource quality still matters, but location, infrastructure, and route to market are becoming just as important.

Chemicals M&A has been more subdued in 2026, with both volumes and values down as weaker demand and margin pressure weigh on activity. The absence of chemicals megadeals so far this year has also contributed to lower deal value, particularly after four megadeals lifted the sector in 2025.

Portfolio simplification continues to drive activity. Large producers are divesting non-core assets to sharpen focus, release capital, and reduce exposure to lower-margin businesses. Recent examples include Berkshire Hathaway’s acquisition of OxyChem, Bluestar’s acquisition of Elkem Silicones, and European carve-outs such as Aequita’s acquisition of SABIC’s European petrochemicals assets. In Europe, elevated energy costs and global competition are pushing more restructuring and asset sales, creating opportunities for private equity and strategic buyers with operational improvement experience.   

Specialty chemicals remain more attractive, particularly where assets serve energy transition, water treatment, semiconductor, battery, or AI-related infrastructure. Technical differentiation, customer stickiness, and pricing power are supporting investor interest, while commodity chemicals remain more exposed to cost pressure and demand volatility.

For dealmakers, chemicals M&A is likely to remain disciplined. The strongest opportunities will be in assets with resilient cash flows, clear separation plans, and exposure to higher-growth end markets. The challenge will be distinguishing true value creation opportunities from businesses under pressure for structural reasons.