Global M&A activity took a pause at the start of the year, as volatile markets and economic uncertainty followed Liberation Day tariffs. However, strategic demand for deals remains strong and for global companies exploring ways to diversify, Australia is set to be a key beneficiary. Following the inaugural Business Leaders’ Summit in Sydney, Anu Aiyengar, global head of Advisory and M&A and Kierin Deeming, head of M&A for Australia, share four themes shaping the dealmaking landscape in Australia and beyond for the rest of 2025.
1. Cross-border interest is on the rise
M&A markets benefit from clarity, so in certain sectors dealmakers have been waiting for a clearer outcome on global trade talks and a better picture of the economic outlook. Longer term, as global businesses and financial sponsors consider where to allocate capital or how to diversify as global supply chains shift, cross-border deals will likely be an area to watch. In Australia, cross-border interest from the U.S. and Japan has been a growing theme.
“There are already a significant number of international investors in the Australian market. For U.S. companies looking to transact, Australia is an attractive market where investors can have confidence in company financials, as well as the regulatory and legal framework,” Aiyengar said.
2. Consolidation in commodities
Global companies continue to eye transactions in Australia, particularly in the mining and energy sectors, with strategic consolidation a consistent trend. J.P. Morgan acted as sole financial adviser and sponsor to Gold Fields in its A$3.7 billion acquisition of Gold Road Resources earlier this year, the largest all-cash M&A deal in the global gold sector in the last 10 years.
“Global companies are trying to lock in the benefits of economies of scale, particularly in sectors like mining where you are dealing with a finite life asset. We are seeing a trend of consolidation underpinned by a positive outlook for many commodity prices,” Deeming said.
3. Cash deals in focus
Globally, a preference for cash over stock deals in M&A markets remains and company cash levels are generally high. In the Asia Pacific region, Japanese companies in particular are known for ample cash holdings, following a prolonged period of deleveraging. Recent corporate reforms aimed at raising valuations and improving capital efficiency are encouraging companies to increase shareholder value by utilising excess cash.
“There's a tremendous amount of cash sitting on many companies' balance sheets. It's a decade-high level of cash being used as currency, influenced by three things: Companies are cash-rich, targets prefer cash over stock and third, the relative size of the acquirer and the target – because of which you can do cash deals,” said Aiyengar.
4. Timing remains key
Market volatility may have caused some delay in execution timelines, but strategic appetite for transactions across the region has not changed and for companies with strong balance sheets, volatile markets can present an opportunity to expand through M&A.
“Australia is a market that is conducive to doing transactions. The shareholder base is very active, engaged, sophisticated and open to value-adding transactions. Where activity in other parts of the world may slow, we can find ways to execute transactions in all market conditions,” Deeming added.
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