Australia’s mergers and acquisitions (M&A) market has demonstrated resilience through 2025 and is poised for a stronger year ahead, according to Corrs Chambers Westgarth’s M&A 2026 Outlook.
Corrs’ head of corporate, Sandy Mak, said the past year has been defined by “resilience and recalibration” as dealmakers navigated heightened uncertainty and shifting global dynamics.
“Despite ongoing economic uncertainties and geopolitical tensions, the global M&A landscape in 2025 has shown notable resilience and strategic momentum,” she said.
While transaction volumes eased slightly, Corrs’ analysis shows total deal value in Australia held firm at $47 billion, supported by strong activity in key sectors such as resources, technology and financial services.
The firm expects six major themes to shape M&A in 2026: supply chain diversification, increased investment in defence and defence-adjacent sectors, a stronger focus on technology and innovation, a rise in shareholder activism, continued momentum in resources deals, and renewed cross-border investment led by US bidders.
Mak said that supply chain diversification has become a “structural feature of corporate and government strategy rather than a short-term response to risk”.
The ongoing shift towards “China-plus-one” manufacturing and sourcing models is expected to create opportunities for Australian companies, particularly in critical minerals, battery metals and clean-energy resources.
Resources M&A remains the most active sector, accounting for 28 per cent of all transactions in 2025, down from 37 per cent the previous year but still representing the largest share of the market.
Corrs pointed to the landmark bilateral framework on critical minerals and rare earths, signed in October by Prime Minister Anthony Albanese and US President Donald Trump, as a potential catalyst for strategic acquisitions.
The framework commits at least US$1 billion from each government towards a US$8.5 billion pipeline of projects, with both nations able to take equity stakes and secure offtake rights.
Technology, media and telecommunications (TMT) activity has also surged. TMT deals doubled from the previous year and nearly equalled energy and resources transactions.
Corrs highlighted CoStar’s $2.8 billion acquisition of Domain and the merger between Southern Cross Media Group and Seven West Media as examples of the trend.
“We expect this remarkable growth trajectory to continue into 2026,” the report stated.
At the same time, shareholder activism has emerged as a defining force in the market. Corrs found that 36 per cent of terminated transactions in 2025 resulted from shareholder opposition.
The backlash surrounding the James Hardie Industries acquisition of US-based Azek Company — which led the ASX to consult on tightening rules for dilutive acquisitions — reflects the growing willingness of institutional investors to challenge boards.
“We expect major shareholders, particularly activist investors, to have an increasingly significant role to play in deal structuring and deal success,” Corrs said, adding that boards would need to engage earlier and more transparently with investors to preserve confidence in contested transactions.
Finally, Corrs anticipates renewed foreign direct investment in Australian targets, led by US bidders re-entering the market amid stabilising interest rates, higher CEO confidence and the revival of private equity activity.
Overall, the firm concludes that Australia’s reputation as a “stable, resource-rich and innovative economy” will continue to attract long-term investors.
“As global conditions evolve, these strengths are expected to underpin Australia’s ongoing appeal to international dealmakers in 2026,” Corrs said.
