Australia’s M&A Market: A Tale of Two Halves

Australia’s mergers and acquisitions (M&A) market in recent years has reflected a story of stark contrast. The first half was marked by cautious optimism, with dealmakers navigating rising inflation, interest rate uncertainty, and global volatility. Despite headwinds, strategic acquisitions and sector-specific consolidations kept the M&A engine humming. However, the second half brought a shift in momentum. Regulatory scrutiny tightened, capital became more expensive, and investor sentiment cooled. Activity slowed, especially in high-growth and leveraged sectors. Yet, resilient sectors such as energy transition, infrastructure, and healthcare continued to attract targeted interest. Ultimately, Australia’s M&A landscape in this bifurcated year highlights the adaptive nature of dealmaking. While external pressures reshaped priorities, opportunity still lay in value-aligned transactions. The tale of two halves reveals a market in transition—tempered, but not stalled.