Global M&A Trends in Energy, Utilities & Resources: 2023 Mid-Year Update

The global pursuit of strategic energy transition objectives continues to draw significant investment capital into the energy, utilities and resources sectors.

Strategic energy transition and security of supply investment opportunities are dominating the capital flows in the energy, utilities and resources (EU&R) market, and we expect this trend to continue for the remainder of 2023 and into 2024. As the investor pool continues to broaden and deepen, those investors are directing larger volumes of capital into merger and acquisition (M&A) opportunities and into greenfield and brownfield projects.

Companies globally, across all sectors, are being driven to transform—and, in some cases, completely reinvent—their business models due to decarbonisation, digitalisation, changing consumer behaviours, and a less stable geopolitical landscape. The EU&R sector, in particular, is benefiting from these broader trends, and consequently, we are seeing an influx of capital as companies and investors seek to execute on their transformation and reinvention objectives.

The challenge for all businesses during this transformative period is how to find the right balance between delivering near-term shareholder value and building the resilience and agility needed to thrive in an advanced-technology, low/no-carbon environment that is focused on environmental, social and governance (ESG) topics.

‘Globally, businesses continue to pursue strategic energy transition objectives. As a result, the energy, utility and resources sector is attracting significant investment capital from a broad investor base to execute M&A and projects that help achieve those objectives.’

Michelle GrantPartner, PwC Canada

2023 mid-year M&A outlook for energy, utilities & resources

As lifestyles change to embrace a lower-carbon, ESG-focused, advanced-tech future, EU&R businesses and investors must adapt and position themselves for a world of transition. Companies will need to be resilient and agile as they look to adjust their materials supply chains and overall value chains. Those that act early and decisively to transform or reinvent their business models, including through M&A, will be well placed to create value and deliver sustained outcomes.

2023 mid-year M&A outlook for energy, utilities & resources image

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Want to know the M&A trends we expected in Energy, Utilities and Resources at the beginning of 2023?

Read our 2023 Outlook