Energy transition M&A showed resilience in 2025

The energy transition M&A market showed resilience in 2025. Although deal volume fell 15% to 4,409 transactions, total deal value rose ~20% to $599 billion. Capital shifted toward larger, higher-quality assets, while cross-border deal value surged nearly 50% to $350 billion.

The energy transition value chain led the way, with deal value up 38% to $271 billion, fueled by energy efficiency, grid services, and circular economy solutions. Energy storage continued its strong growth, rising 30% to $30 billion, with 90% of respondents ranking it as the top category and viewing it as core infrastructure.

Renewable generation saw volume drop 27% but value reach $202 billion thanks to large solar and wind portfolio deals. Natural resources supply chain and e-mobility both contracted in activity.

In the Americas and Europe, deal values grew strongly to $331 billion and $154 billion respectively. Survey respondents cited financials and valuation as the main driver (45%), followed by core business alignment (31%), while 86% noted persistent challenges including regulatory and grid constraints.

2025 marked a year of disciplined investment. Looking into 2026, selectivity, scale, and strategic assets, especially those supporting electrification and flexibility, are expected to remain in focus.

Source: inform-new.dlapiper.com