October 15 2025 | M&A Advisors | Deals | Energy & Industrials
Although the utilities and energy sector in Australia and New Zealand is experiencing short term volatility, long-term, the deal pipeline is being supported by the transition to renewables, according to our Australia and New Zealand Deal Indicators Report for FY2025 .
Ansarada’s deal room data reveals a 29% decline in energy transaction volumes over the past year. More recently, the energy sector has had a 50% decline in transaction volumes in terms of quarterly growth. This sharp drop indicates a challenging environment for energy transactions, due to market volatility and shifts in demand.
The data is also challenging for the energy sector from an industry perspective. For instance, according to Ansarada’s deal room data, communications services has had a remarkable 400% increase in quarterly transactions and a 100% increase year-on-year.
Digitisation boosts deals
This highlights the ongoing robust demand for communications infrastructure and services, driven by technological advancements and digital connectivity. The consumer discretionary sector has also outperformed energy, with 6% quarterly growth and 108% year-on year growth, indicating a long-awaited rebound in consumer spending and confidence.
“Throughout FY25, our Deloitte M&A Advisory team in New Zealand has observed robust activity in the healthcare and energy transition/sustainability sectors. However, deal completion has been slower, with a notable increase in bilateral transactions. We anticipate these trends will continue into FY26, supported anecdotally by our strong pipeline of deals in these sectors that we expect to bring to market in late 2025 and early 2026,” says Thomas Watson, Partner M&A Advisory, Deloitte.
Big deal folds
The biggest transaction announced in the period was The Abu Dhabi National Oil Company’s proposed A$36.4 billion cash takeover bid for Australian energy group Santos. The bid, led by XRG, the international investment arm of the Abu Dhabi government company, received early support from Santos’ board, but has since been abandoned .
Another major deal was Contact Energy’s pending $1.4 billion acquisition of Manawa Energy in New Zealand , highlighting the growing focus on hydroelectric
power as a sustainable energy source. This reflects a broader trend of diversifying energy portfolios to include cleaner, renewable sources. Similarly, CS Energy’s completed $860 million acquisition of the Lotus Creek Wind Farm in Australia underscores the increasing investment in wind energy projects to meet renewable energy targets.
Sovereign funds active
Additionally, the energy sector has seen significant government involvement, as evidenced by the Australian federal government Future Fund’s $771 million acquisition of a stake in NSW Electricity Networks Operations Trust. The move highlights public sector efforts to secure strategic assets in electric power infrastructure. Another noteworthy transaction was Electric Power Development Co of Japan completing a $656 million acquisition of Genex Power , further illustrating international interest in Australia’s energy assets.
Looking ahead, energy is facing a complex landscape, although a recent quarterly uplift of 23% in energy transactions in Ansarada’s deal room suggests a potential turnaround.
The energy sector’s future will depend on its ability to adapt to changing market conditions, regulatory environments and technological advancements. The path towards a renewable future is by no means straight. While this will provide M&A opportunities, it will be important to be on the right side of the deal.
