Geopolitical developments, shifting energy security priorities, and the energy transition will be key drivers of M&A in the energy, utilities and resources sectors in 2025.
In mid-2024, we wrote that the energy, utilities and resources (EU&R) industries continue to be an exciting space for global M&A. As we enter 2025, the energy transition remains the primary driver of M&A activity in the EU&R sectors. However, the pace and nature of change will differ across regions and industries, influenced by geopolitics, energy security, and rising energy demand, particularly from AI. As companies strive to secure stable, affordable, and sustainable energy sources, we expect M&A activity to remain strong across the sector. Read on for our latest insights into M&A trends and developments in EU&R.
In 2024, EU&R deal activity outperformed other sectors due to its critical role at the start and at the core of global supply and production chains. As companies navigate evolving regulations, resource constraints, and regional dynamics, the urgency to secure reliable and sustainable energy is driving M&A. In 2025, we expect this momentum to accelerate, fuelled by the energy transition and technological advances.
Investments will focus on renewables, grid modernisation, and critical minerals essential for clean energy technologies. We also expect fossil fuel assets to consolidate as traditional energy players rebalance their portfolios. Emerging markets are likely to attract strong interest due to resource availability and supportive policies, while private equity and sovereign wealth funds remain active alongside strategic buyers prioritising climate-related acquisitions. Cross-sector interdependencies will play an increasingly important role – and as industries evolve, dealmakers will need to factor these dynamics into their M&A strategies to stay ahead in an environment of ongoing reconfiguration.
The M&A landscape varies significantly by region, driven by political changes, energy security priorities, and the transition to renewables. In the US, Trump’s presidency is expected to boost investment in fossil fuels, while nuclear power is attracting renewed interest. Renewables will benefit from long-term support despite short-term policy shifts. Europe remains focused on energy security, renewables, and grid upgrades, although high costs and regulation may dampen deal activity.
Japan is reviving nuclear power while increasing imports of critical minerals. In China, the EV boom is driving sector consolidation, particularly in solar, energy storage, and critical minerals. Latin America is emerging as a renewable energy hub, with increasing M&A activity in lithium and mining, particularly in Chile and Peru. Africa offers strong investment opportunities in natural gas, hydro, and distributed renewables, driven by domestic and global demand. India’s energy transition is balancing renewables, coal, and critical minerals as it pursues ambitious decarbonisation targets.
Spotlight on cross-sector interdependencies
Cross-sector interdependencies are becoming a major driver of M&A activity in the energy, utilities and resources sectors as companies adapt to changing market dynamics, technological advances, and sustainability requirements. Companies are increasingly forming alliances and acquiring adjacent technologies to strengthen supply chains, gain market share, and position themselves for future growth. This reconfiguration is reshaping industries, moving away from traditional sector definitions towards thematic areas such as energy, mobility, and manufacturing.
For example, Volkswagen’s acquisition of a stake in lithium developer Patriot Battery highlights how automotive players secure raw materials for EV production. Similarly, partnerships such as BP’s alliances with Worley and Wood in construction, and Bruce Power’s collaboration with GE Vernova, demonstrate the drive for efficiency, scale, and resilience. As these shifts continue, M&A strategies will increasingly focus on cross-industry ecosystems rather than traditional sector-based approaches, shaping the long-term evolution of global energy and resource markets.
Four key themes to watch in 2025
EU&R sectors play a central role in balancing sustainability, reliability, and growth. In 2025, four key themes will drive M&A activity in this evolving landscape:
Energy security and geopolitics
Energy security continues to drive M&A as countries seek reliable, diversified supplies amid geopolitical shifts. The US is expected to favour fossil fuel investments, while Europe is focused on reducing import dependency. These trends are driving cross-border deals in natural gas, nuclear, and critical infrastructure.
Energy transition and decarbonisation
The global push for decarbonisation is driving M&A activity in battery storage, critical minerals, and renewables. Rising demand for lithium, cobalt, and nickel is fuelling mining deals, while investment in green hydrogen, EV infrastructure, and grid modernisation remains strong. Notable deals include KKR’s acquisition of Encavis and Iberdrola’s purchase of Electricity North West.
Technological advancements and digital infrastructure
The surge in AI and cloud computing is driving demand for energy-intensive data centres, spurring partnerships and acquisitions to secure power supply. Major deals include the September 2024 AI partnership between BlackRock, Global Infrastructure Partners, Microsoft, and a Middle Eastern AI investor. Investments in smart grids and energy management systems are improving efficiency.
Cross-industry convergence
Industries are converging as companies seek synergies to meet evolving energy needs. Tech firms are investing in renewables, energy companies are acquiring digital solutions, and manufacturers are securing reliable power for decarbonisation. This drives partnerships, such as the German Industry Association for Fusion Energy in October 2024, with M&A increasingly crossing sector boundaries.
Between 2023 and 2024, global EU&R deal volumes declined by 8% – outperforming the overall M&A market, which saw deal volumes decline by 18%. Deal values fell by 23%, largely due to a drop in megadeals (deals exceeding $5bn), with only ten announced in 2024 compared to 16 in 2023. It is worth noting that in 2023, two announced deals exceeded $50bn – Exxon’s acquisition of Pioneer Natural Resources and Chevron’s proposed purchase of Hess. In contrast, the largest EU&R deal announced in 2024 was the $26bn merger between Diamondback Energy and Endeavor Energy Resources.
Global M&A trends in energy, utilities and resources
A look at the EU&R sectors shows that supply chain security, the clean energy push, energy security, portfolio optimisation, and the need to balance conventional and renewable investments are the main drivers of M&A activity.
Mining and metals: a defining year ahead
The mining and metals sector is set for a pivotal year in 2025, with strong M&A activity driven by its essential role at the start of global supply chains. Consolidation and strategic repositioning will continue, particularly in critical minerals, gold, copper, and coal. Key deals in 2024 include Rio Tinto’s $6.7bn acquisition of Arcadium Lithium, Glencore’s $7.3bn purchase of Teck Resources’ steelmaking coal business, and BHP and Lundin Mining’s joint $3.3bn acquisition of Filo Mining. Newmont Gold Corporation announced the sale of non-core assets as part of its portfolio optimisation strategy, while AngloGold Ashanti completed its $2.5bn acquisition of Centamin. Despite challenges such as regulatory hurdles, pricing differentials, and geopolitical factors, reduced political uncertainty and lower interest rates are expected to support dealmaking in 2025.
Key trends include a preference for acquiring established assets over capital-intensive new projects, rising gold prices driving acquisitions, and increased investment in critical minerals as the US reduces its dependence on China. In addition, growing demand for nuclear power could spur uranium deals, while volatility in commodity prices could create restructuring and distressed M&A opportunities. Given the central role of mining in global industries, we expect deal activity to remain strong as companies position themselves for future opportunities.
Oil and gas: energy security and consolidation
The oil and gas sector remains resilient amid changing market conditions and the global push for decarbonisation. Recent M&A activity reflects continued consolidation, portfolio diversification, and greater integration of clean energy solutions. Key deals in 2024 include ExxonMobil's $60bn acquisition of Pioneer Natural Resources, doubling its footprint in the Permian Basin; Devon Energy’s proposed $5bn purchase of Grayson Mill Energy’s Williston Basin assets; and Prio SA’s $1.9bn bid for the Peregrino and Pitangola oil fields in Brazil. Furthermore, ConocoPhillips’ strategic gas sales in Europe highlight the industry’s focus on portfolio optimisation.
Looking ahead to 2025, M&A activity will be driven by continued consolidation in upstream, midstream, and oilfield services, particularly in the US, where energy independence remains a priority. Operational efficiency and strong cash flows will be key to financing future growth, with non-traditional sources of capital, including private credit and large commodity traders, playing an increasing role. In Europe, the balance between energy security and decarbonisation will support deal activity. Companies that successfully adapt, whether through acquisitions or the integration of renewables, will help shape the future of the industry, making 2025 a defining year for oil and gas M&A.
Power and utilities: balancing growth and transition
The power and utilities sector is set for a dynamic 2025, driven by rising energy demand, technological advancements, and geopolitical influences. The rapid growth of AI, cloud computing, and digital infrastructure is fuelling demand for data centres that prioritise reliability and speed over cost. This is expected to drive investments in both modernised nuclear technology and innovative renewable solutions, such as carbon capture paired with thermal generation. The push for small modular reactors also reflects a growing focus on sustainable, utility-scale energy solutions, despite longer lead times.
While investor interest in renewables remains strong, policy changes – notably the US administration’s potential rollback of environmental regulations and reduced subsidies – could slow renewable deals while encouraging investment in fossil fuels, particularly natural gas. In contrast, European M&A activity is expected to focus on wind, solar, energy storage, electric vehicle charging, and energy efficiency, with a focus on later-stage climate tech investments.
Despite short-term uncertainties, the long-term outlook for renewables remains strong. While M&A activity in fossil fuel assets may accelerate, investors will need to stay agile to capitalise on renewables as government incentives stabilise. As the sector navigates changing energy demands and regulations, 2025 will be a turning point in balancing conventional and renewable investments.
Chemicals: poised for recovery
The chemicals sector saw lower deal activity in 2024 but showed signs of recovery in the second half of the year, driven by interest rate cuts, moderating inflation, and an easing of destocking trends. This momentum is expected to continue in 2025, supported by domestic industrial policy, supply chain shifts, and more private equity exits. Regionally, the US is emerging as a prime M&A destination, backed by reshoring, incentives, and low-cost feedstock. In the Middle East, national oil companies and sovereign wealth funds are playing an increasing role, as evidenced by ADNOC’s $16.3bn bid for Covestro. China’s M&A outlook is improving as the economy recovers, while high production costs are likely to keep European deal activity subdued.
Most buyers are favouring smaller, strategic acquisitions over large deals, with private equity exits increasing the availability of assets. These factors point to a steady resurgence in chemicals M&A, driven by shifting market priorities and strategic realignments.
“Cross-sector interdependencies are reshaping the energy, utilities, resources, and chemicals sectors, driving strategic repositioning. This shift will result in M&A, partnerships, and alliances in 2025 and beyond.”
Marc Schmidli Partner, Deals Leader, PwC SwitzerlandM&A outlook for energy, utilities and resources in Switzerland 2025
In Switzerland, the energy, utilities and resources sectors reflect similar trends to those seen globally, with a focus on sustainability, technological innovation, and market consolidation. While hydropower remains the backbone of Swiss energy production, the push for renewables is driving increased investment in solar and wind projects. ESG mandates continue to influence transactions, leading to both local and cross-border acquisitions aimed at expanding green energy portfolios. Beyond power generation, Swiss utilities are increasingly targeting specialised engineering, consulting, and digital companies. The goal is to modernise grid infrastructure, develop energy-efficient services, and offer integrated energy solutions with a clear emphasis on flexibility.
M&A industry trends in Switzerland
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Marc Schmidli