Nicholas Tonkes On Australia’s M&A Market Momentum

Australia's M&A market is poised for a significant year as 2026 begins, following a robust surge in activity. Early in the new year, BlueScope announced a takeover proposal from SGH and Steel Dynamics, valuing the Australian steelmaker at over AUD 13 billion (USD 8.9 billion). Days later, Rio Tinto confirmed it was in discussions with Glencore about a potential merger that could establish the world’s largest mining company.

According to Nicholas Tonkes, head of private capital for Asia Pacific at Oliver Wyman, the recent fundraising growth amongst those larger private capital investors has acted as a catalyst for larger sponsor buyout transactions, “pursued in cases whereby larger transaction opportunities align with established investment theses already in place.” He also stated that investor appetite is strong in areas such as transport and logistics, energy assets, digital assets and services, as well as business and financial services, with active consideration of IPO listing of their portfolio assets given the ongoing positive conditions in equity markets.

The optimism in the Australian M&A space is buoyed by investors' increasing willingness to explore new opportunities, indicating a very active year ahead.

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