Company Interview / M&A deals top $20 billion

Key points:

$20 billion in public M&A deals recorded over six months, focused on resilient sectors Major transactions include Qube Holdings (ASX:QUB), National Storage REIT (ASX:NSR), and RPM Global Holdings (ASX:RUL) Private equity remains highly active, targeting public companies like Insignia Financial (ASX:IFL) Regulatory changes mean most public deals now require ACCC review, but approval times remain efficient

Australian M&A has begun the year with renewed strength, according to Will Heath from King & Wood Mallesons. Heath points to $20 billion in announced public deals across 16 transactions over the six months to February, signalling robust buyer and seller activity despite ongoing market volatility and regulatory changes. Heath observes that companies are gravitating towards sectors with lower short-term volatility, particularly real estate, infrastructure, and mining. These sectors, considered resilient and comprising "hard asset" categories, dominate recent transactions, with notable deals such as Qube Holdings and National Storage REIT (ASX:NSR) taking the spotlight.

Heath notes the continued activity in minerals and gold consolidation, underscoring ongoing investor willingness to pursue public markets deals, albeit with greater selectivity. Technology, by contrast, is experiencing fewer transactions, which Heath attributes to AI disruption and valuation adjustments within the sector. Noteworthy is the RPM Global Holdings (ASX:RUL) transaction involving Caterpillar's move into technology-adjacent industrials, illustrating strategic cross-sector M&A.

Private equity remains a prominent force, with ongoing activity in taking public companies private, such as Insignia Financial (ASX:IFL). Heath highlights optimism about private equity-backed IPOs or reverse takeovers emerging on the ASX, potentially invigorating the listings environment later in the year.