PwC: Global M&A trends in energy, utilities and resources
Strategic M&A in energy, utilities and resources will continue to unlock ‘value in motion’ for the second half of 2025.
By Tracy Herrmann, PwC’s global energy, utilities and resources deals leader; Chloe Ho, PwC Canada deals partner focused on energy and digital infrastructure; and Greg Oberti, energy transition and utilities deal leader at PwC Canada
Plugging into the future: Energy security, digital infrastructure and diverging regulation drive M&A.
The energy, utilities and resources sectors are at the forefront of global transformation, and this will continue to mark their M&A outlook in the second half of 2025 and beyond. Electrification, energy security and digital infrastructure are driving strategic M&A, while regional policy differences and ongoing geopolitical tensions create both challenges and opportunities. Some ‘wait and see’ sentiment may affect short-term deal momentum, but it hasn’t impeded significant deal activity in the first half of the year, with nine megadeals of $5bn or more announced and a steady flow of smaller transactions. The sector’s long-term fundamentals remain robust, requiring industry players to be proactive with portfolio realignment and strategic investment.
The scale of required capital expenditure is unprecedented. That makes it necessary for new policies to be put in place and for continued government support to reduce uncertainty for private capital. The convergence of energy security imperatives, decarbonisation mandates, and rapid expansion of digital infrastructure means governing bodies, corporations, and financial investors will need to work together to capture evolving infrastructure opportunities.
Across key markets, M&A activity is shaped by the need to diversify risk throughout the value chain and balance the level of capital required to support infrastructure investment.
At a glance, here’s what we expect M&A activity will look like across the mining and metals, oil and gas, power and utilities, and chemicals sectors over the remainder of 2025 and into 2026:
Resource nationalism and the race for critical minerals are driving consolidation and divestitures in mining.
Oil and gas M&A focuses on reserve security and capital expenditure management.
In power and utilities, the growing energy demand for data centres, cloud computing and AI, is accelerating capital redeployment in infrastructures and grid upgrades, on-site generation, and battery storage.
Chemicals M&A targets specialty, sustainable segments and potential capacity needs for reshoring and independence.