2025 Outlook

Global M&A Trends in Energy, Utilities & Resources

Global M&A Trends in Energy, Utilities & Resources hero image
  • Insight
  • 9 minute read
  • January 28, 2025

Transformative shifts in geopolitics, energy security priorities and market dynamics will drive M&A in the energy, utilities and resources sectors in 2025.

Greg Oberti

Greg Oberti

National Energy Transition & Utilities Deals Leader, Partner, PwC Canada

Entering 2025, the energy transition remains the most significant driver of M&A activity in the global energy, resources and utilities (EU&R) industry. However, the shape and pace of change will vary significantly by both region and sector as factors such as geopolitics, energy security, the surging demand for energy needed to power AI and other market dynamics play out. 

As global players navigate these regional dynamics, the race to secure reliable, affordable and sustainable energy sources is intensifying, setting the stage for robust M&A activity across all elements of EU&R in 2025.

A varied regional landscape for M&A

In the US, the re-election of Donald Trump as president has ushered in a policy landscape favoring fossil fuels that may also roll back some environmental regulations. This shift is expected to drive investments in natural gas infrastructure and fossil generation assets, while renewable energy is expected to continue to benefit from long-term support despite near-term uncertainties. Nuclear power is once again being considered to help meet soaring demand for emissions-free electricity, with plans to bring certain decommissioned nuclear power reactors back online. 

In Europe, energy security remains paramount as the region seeks to reduce dependency on external energy sources. The European Union is intensifying its focus on renewables, grid modernisation and energy storage, although regulatory challenges and high costs could temper deal activity. 

Like the US, Japan is reviving its nuclear energy ambitions, while increasing its reliance on critical mineral imports to meet growing domestic energy demands.

In China, with the accelerated growth in electric vehicles, we expect to see an uptick in M&A activity as companies adapt to larger scale economy requirements; this will result in an increase in sector consolidation (particularly in the solar sector) and in supporting sectors such as energy storage and critical minerals.

Latin America is emerging as a hot spot for renewable energy investment, with its abundant solar and wind resources attracting global capital. Rising interest in lithium and other critical minerals will also fuel M&A activity in the region’s mining sector, particularly in Chile and Peru. 

Africa offers significant opportunities for investors as nations seek to bridge energy access gaps. Investments in natural gas, hydroelectric projects and decentralised renewable systems are set to accelerate, supported by increasing demand from both domestic markets and global commodity buyers.

India’s ambitious decarbonisation targets are reshaping its energy landscape. The country’s growing appetite for renewable infrastructure, alongside strategic investments in coal and critical minerals, underscores the delicate balancing act between energy security and sustainability facing developed and developing countries alike.

Spotlight on cross-sector interdependencies

We first discussed a ‘reconfiguration imperative’ in our 2024 mid-year outlook and highlighted how megatrends such as climate, technology and demographic shifts are disrupting business models and driving EU&R M&A activity globally. 

At the heart of all of this is a massive move towards cross-sector interdependency with companies acquiring, allying and partnering in novel ways and across industries. Companies are doing so to capture market share, drive value, secure critical supply chains and position themselves technologically. The growing importance of such moves will increasingly shape M&A strategies, with particular significance among energy, utilities and resources players, given the central role they are likely to play in many of the transitions ahead. 

Dynamic changes to the business landscape are creating new value pools. These are no longer defined by sectors but instead are driven by thematic domains of activity which are a nexus of different sectors. At PwC, we think of this reconfiguration as playing out across six domains: how we fuel, how we move, how we build, how we make, how we feed ourselves and how we care. In each domain, new ecosystems are emerging that not only inform our thinking but underscore the cross-industry alliances and partnerships that are starting to form all over the world.

‘We see significant cross-sector interdependencies emerging as part of the industrial reconfiguration across the energy, utilities, resources and chemicals sectors. Companies' efforts to strategically reposition themselves will create the catalyst for M&A, partnerships and other alliances—in 2025 and for many years to come.’

Greg Oberti,Energy Transition & Utilities Deals Leader, Partner, PwC Canada

In an EU&R context, we see examples of this cross-sector interdependency in the ‘how we move’ domain, among others. Companies will engage in M&A as they look to reconfigure to strategically gain access to raw materials, obtain adjacent technologies or expertise, shore up supply chains and secure energy needs. Thus, mining companies will partner with, or even become acquisition targets of, automotive players to secure lithium supplies for electric vehicle battery production, as illustrated by Volkswagen’s December 2024 acquisition of 9.9% of lithium developer Patriot Battery. We expect further deals activity related to critical minerals and focused on other areas such as emergent technology platforms centered on companies aiming to solidify their strategic position in an increasingly multipolar geopolitical context. 

We also see EU&R applicable examples in other domains, including, “how we build” and “how we make”. For example, we expect EU&R companies to connect with construction firms or manufacturing companies. These types of connections could play out in a number of ways and act as a conduit for companies to collaborate across industries to achieve scale, grow revenue streams and secure supply chains. In 2024, we saw the continuation and acceleration of this trend; for example, in the “how we build” domain, BP signed notable global alliances in June 2024 with Worley, an Australian engineering services company, and in August 2024 with Wood, a global engineering consulting company, to drive efficiency, continuous improvement and enhanced site development. In the “how we make” domain, Canadian company Bruce Power's March 2024 alliance with GE Vernova's steam power business is intended to better secure its critical supply chain and drive efficiency across its operations.

60%

of CEOs planning to undertake acquisitions over the next three years expect some of their dealmaking capital to be deployed in sectors or industries other than their own.

Source: PwC’s 28th Annual Global CEO Survey, January 2025

Key M&A themes for energy, utilities and resources in 2025

The EU&R sectors are at the heart of efforts to balance sustainability, reliability and growth. We see four key themes shaping M&A in this dynamic environment in 2025.

Energy security and geopolitics

Energy security remains a key driver of M&A as countries prioritise reliable and diversified energy supplies amid geopolitical tensions and shifting alliances. Under the new US administration, US policy will likely favour fossil fuel investments to strengthen domestic energy independence. Europe will continue pushing to reduce reliance on imports, particularly from Russia. These dynamics are fostering cross-border deals in natural gas, nuclear and critical infrastructure assets.

Energy transition and decarbonisation

The global shift toward decarbonisation will spur M&A in areas including battery storage and critical minerals. The rising demand for lithium, cobalt and nickel—which are essential for energy storage and electric vehicle production—is driving mining deals, particularly in Latin America, Australia and Africa. M&A in renewable energy is also expected to remain active, with companies acquiring renewable assets and investing in infrastructure to support green hydrogen, electric vehicles and grid modernisation. Examples include KKR’s takeover of Encavis, a German renewable energy platform and independent power producer, and Iberdrola’s acquisition of Electricity North West, a UK energy network operator.

Technological advancements and digital infrastructure

The rapid adoption of AI, cloud computing and digital transformation is creating unprecedented demand for energy-intensive data centers. This is leading to novel partnerships and acquisitions to secure power supply for these facilities, such as the AI partnership announced in September 2024 among BlackRock, Global Infrastructure Partners, Microsoft and a leading AI investor from the Middle East to invest in data centres and supporting power infrastructure. Investments in smart grids and energy management systems are also rising to enhance efficiency and resilience.

Cross-industry convergence driving new opportunities

The lines between energy, utilities and resources will continue to blur as companies seek synergies to address evolving energy needs. We see this with technology firms investing in renewables and energy storage for data centers, while traditional energy companies are acquiring digital solutions to enhance operations. Likewise, industrial players are teaming up with energy firms to secure reliable power to decarbonise manufacturing. This convergence will fuel innovative partnerships, such as the formation in October 2024 of an industrial association by a group of German companies to accelerate the commercialisation of fusion energy technology. M&A activity will continue to cut across traditional industry boundaries.

82%

of EU&R CEOs who made a significant acquisition in the past three years plan to make one or more acquisitions in the next three years.

Source: PwC’s 28th Annual Global CEO Survey, January 2025

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

Mining is uniquely situated at the beginning of the supply chain of most sectors globally, a fact that has driven and will continue to drive strong M&A activity into 2025 and beyond. Recent M&A activity highlights ongoing consolidation trends and strategic repositioning, with a continued focus on the critical mineral, gold, copper and coal sectors. Notable examples include:

  • Rio Tinto Group announced in October 2024 its proposed $6.7bn acquisition of Arcadium Lithium, strengthening its position in the lithium market.
  • Teck Resources completed the sale of its remaining 77% interest in the steelmaking coal business to Glencore plc in July 2024 for $7.3bn.
  • BHP and Lundin Mining announced in July 2024 plans to jointly acquire Filo Mining for $3.3bn, in the form of a 50/50 partnership to advance key copper projects.
  • Newmont Gold Corporation has announced the sale of a number of non-core assets as part of the company’s stated portfolio optimisation strategy.
  • In November 2024 AngloGold Ashanti PLC completed its $2.5bn acquisition of Centamin PLC, which controls Egypt’s biggest gold mine, as it focuses on enhancing its presence in a key gold-producing region. 

However, challenges persist which could still derail some dealmaking, including regulatory delays, persistent pricing expectation gaps between buyers and sellers, geopolitical factors and other deal-specific complexities. Despite these factors, we believe 2025 is poised for heightened deal activity as companies also benefit from reduced political uncertainty and a recent lowering of interest rates.

Key 2025 M&A trends for mining and metals include:

  • Companies will likely show preference for acquiring established assets to mitigate risks and leverage operational synergies rather than initiating capital-intensive new projects.
  • High gold prices and depleted reserves from limited exploration will fuel acquisitions of gold mining companies.
  • As the US reduces its reliance on China, more investment opportunities could emerge in the Americas, particularly in critical minerals.
  • Rising nuclear energy demand and the adoption of small modular reactors are boosting uranium’s appeal and may lead to some dealmaking in the sector.
  • Commodity price volatility may create restructuring situations and distressed M&A opportunities for well-positioned buyers.

Given the mining sector’s increasingly critical contribution to global industries, we anticipate that strong deal activity will continue in 2025. Mining companies are looking to position themselves to adapt to the opportunities that the sector presents in playing the pivotal role of shaping the future, today.

The oil and gas sector is demonstrating its resilience as it adapts to shifting market conditions and the global push for decarbonisation. Recent M&A trends highlight ongoing consolidation, portfolio diversification and the increasing integration of clean-energy solutions. Notable deals include:

  • ExxonMobil’s acquisition of Pioneer Natural Resources for $60bn in May 2024, which doubled the company’s footprint in the Permian Basin.
  • Devon Energy’s proposed acquisition of the Williston Basin business of Grayson Mill Energy for $5bn.
  • Prio SA’s proposed acquisition of the Peregrino and Pitangola Oil Fields in Brazil for $1.9bn.
  • ConocoPhillips’ sale of up to 9 billion cubic metres of natural gas over the next 10 years from its European portfolio of assets to various trading hubs across Europe to focus on higher-return, lower-carbon projects, which reflects the growing trend of portfolio optimisation in the sector.

The oil and gas sector is navigating the intersection of traditional energy demands and the transition to cleaner technologies. To that end, we expect major themes driving M&A in 2025 to include: 

  • Continued consolidation across all traditional energy subsectors, including upstream, midstream and oilfield services subsectors. These investments may be especially prevalent in the US given the expected increased focus on energy independence. 
  • The need for operational efficiency and the pursuit of strong cash flows will drive deal activity as organic cash generation (particularly outside of the US) will be the best source of capital to fund future oil and gas specific growth.
  • In Europe, the salient issue driving deal activity will be how companies opt to position themselves across energy security and decarbonisation.
  • Globally, we anticipate a growing reliance on private credit and a continued rise in non-traditional capital sources, particularly from major commodity trading firms that are playing an increasingly significant role in supporting oil and gas deal activity.

Companies that successfully navigate these shifts, whether by acquiring established assets or by integrating renewable solutions, will be poised to dominate the future energy landscape. We believe that M&A activity in 2025 will be pivotal in defining the oil and gas landscape for the balance of this decade.

The power and utilities sector is poised for a dynamic year in 2025, driven by a convergence of growing energy demands, technological advancements and geopolitical influences.

A key M&A driver is the burgeoning demand for data centres, fueled by the rapid growth of AI, cloud computing and digital infrastructure, which is forcing energy markets to respond. A key difference between hyperscale data centres and other energy consumers is that they place greater emphasis on reliability and speed of energy access over cost. This power demand growth is likely to revitalise investments in conventional power sources such as modernised nuclear technology as well as innovative renewable solutions such as carbon capture, utilisation and storage (CCUS) paired with thermal generation. Likewise, the growing pursuit of small modular reactor technology underscores the global prioritisation of sustainable, utility-scale energy solutions, albeit with potentially longer lead times.

Navigating political and market uncertainties

Investor interest in renewables remains strong. However, policy uncertainty, particularly following the re-election of Donald Trump as US president, has introduced some caution to the renewables market, not just in the US but globally. Policies favoring traditional energy sources and relaxed environmental regulations are likely to spur fossil fuel investments in the US, particularly in natural gas infrastructure.

This dual focus reflects the sector’s transitional phase, in which near-term reliance on conventional power coexists with long-term commitments to decarbonisation. The new US administration will likely further slow the pace of renewable deals in the US, underscoring the impact political shifts and evolving regulatory landscapes can have on M&A. In the US, reductions in subsidies and incentives in addition to potential tariffs are anticipated to curtail growth in both wind and solar. However, several individual states continue to independently support renewable targets while arguing that key technologies are already competitive on a stand-alone and levelized-cost basis.

In Europe, despite ongoing political and regulatory uncertainty, we see wind, solar, energy storage, EV charging and energy efficiency as areas that will attract the most investor interest and lead to a healthy flow of deals in 2025. With earlier-stage investing more difficult than in prior years, this may lead to some consolidation. This was articulated in PwC’s State of Climate Tech 2024 report, published in December 2024, which found that in the first three quarters of 2024, 61% of corporate climate tech deals were either mid-stage or late-stage—more than twice the percentage in 2018. We accordingly expect the trend of global investment dollars increasingly flowing into proven climate technologies will continue in 2025.

Opportunities ahead

The evolving energy landscape offers significant opportunities for strategic and financial investors. While short-term uncertainty may temper investments in renewables, the long-term value proposition remains strong. Dealmakers should anticipate heightened M&A activity in fossil fuel assets, yet remain agile to capitalise on renewables as government incentives stabilise across multiple markets.

As the sector adapts to meet rising energy demands and shifting political landscapes, 2025 promises to be a transformative year for power and utilities M&A, marked by a strategic balancing of investments in conventional and renewable energy.

Deal value and volume in the chemicals industry ended 2024 below 2023 levels but showed signs of rebounding in the second half of the year, driven by central bank rate cuts, moderating inflation and easing destocking trends. This deals momentum is expected to continue in 2025, provided economic and political uncertainties continue to diminish in key markets. Factors such as domestic industrial policies, global supply chain realignments and increased private equity exits are likely to boost deal activity in chemicals.

Key regional developments shaping the deals landscape in chemicals include:

  • US: A resurgence of dealmaking is expected in the US, with its emergence as a more lucrative destination for chemicals M&A, fueled by reshoring trends (which are likely to accelerate under the new US administration), attractive incentives, advanced energy infrastructure and access to low-cost feedstock.
  • Middle East: National oil companies and sovereign wealth funds are becoming increasingly influential investors in the sector, as highlighted by ADNOC’s $16.3bn proposed acquisition of Covestro AG, announced in October 2024.
  • China: Optimism exists for an uptick in M&A activity in 2025, buoyed by economic recovery and favorable government policies. Chemicals M&A activity showed signs of recovery in the second half of 2024 after hitting a five-year low in the first half of the year.
  • Europe: Dealmaking is expected to remain subdued because of high production costs, with some major European producers closing cracker plants.

Many strategic buyers are pursuing smaller tuck-in acquisitions aimed at enhancing technology, portfolios and geographic reach, rather than large transformational deals. Private equity funds with assets at or approaching the end of their hold periods are expected to drive more exits, increasing the availability of assets for sale.

These dynamics point to a steady resurgence in chemicals M&A activity, underscored by evolving market priorities and strategic realignments.

2025 M&A outlook for energy, utilities and resources

Global M&A activity in the energy, utilities, mining and chemicals sectors is expected to gain momentum in 2025, driven by the energy transition, geopolitical stabilisation and technological advancements. Investments in renewable energy, grid modernisation and critical minerals for clean energy technologies will dominate. Fossil fuel assets may see consolidation as traditional energy players rebalance portfolios. Emerging markets will attract interest because of resource availability and supportive policies. Private equity and sovereign funds will remain active, while strategic buyers focus on climate-related acquisitions.

Going forward, we also see cross-sector interdependencies growing in importance. With the energy, utilities and resources sectors being central to how these interdependencies will play out, this is an area that savvy executives and dealmakers will need to consider as they develop their M&A strategies in response to the reconfiguration imperative facing their companies.

Our commentary on M&A trends is based on data from industry-recognised sources and our own independent research. Specifically, deal values and volumes referenced in this publication are based on officially announced transactions, excluding rumoured and withdrawn transactions, as provided by the London Stock Exchange Group (LSEG) as of 31 December 2024 and accessed between 6–9 January 2025. This has been supplemented by additional information from S&P Capital IQ and our independent research. Certain adjustments have been made to the source information to align with PwC’s industry mapping. All dollar amounts are in US dollars. Megadeals are defined as deals greater than $5bn in value. 

Greg Oberti is a partner with PwC Canada where he is the national energy transition and utilities deals leader. Cameron Stonestreet is a director with PwC Canada.

The author would like to thank the following PwC colleagues for their contributions: Ajay Amin, Lauren Bermack, Lachlan Berry, Derek Chu, Ross Hart, Tracy Herrmann, Seamus Jiang, Rob McCeney, Daniel Rennemo, Louise Roach, Danny Touma and Matthew Williams.

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