Swiss M&A Trends in Energy, utilities and resources

Global M&A deal values in energy, utilities and resources rose by 27% in 2025, despite a 2% decline in overall deal volumes. This divergence was driven by a sharp increase in large transactions, with 20 megadeals (deals above $5bn) completed during the year, compared with just six in 2024. These megadeals covered a wide range of subsectors, including clean energy and power generation, upstream and shale oil and gas, natural gas distribution, midstream infrastructure, fuel retail and chemicals, demonstrating a return of momentum at the upper end of the market.

At a sector level, chemicals and mining recorded modest growth in deal volumes, up 5% and 3% respectively, supported by strategic consolidation and portfolio repositioning. By contrast, deal activity in oil and gas declined by 11%, while power and utilities volumes fell by 7%, reflecting continued capital discipline and selective investment behaviour.

From a regional perspective, the Americas accounted for 41% of global deal volumes and 62% of deal values, including 14 of the 20 megadeals. Deal volumes were broadly flat in the Americas, while Asia Pacific and EMEA both saw a 3% decline in activity.

The EU&R sectors continue to evolve amid rising energy demand, accelerating digitalisation and shifting investment priorities. Against this backdrop, three key themes are set to define M&A activity in 2026:

We expect the following major trends to shape M&A activity in 2026:

Power and utilities: large-scale deals driven by rising energy demand

Structurally higher electricity demand and growing energy security concerns are accelerating M&A activity in the power and utilities sector, with an increasing focus on domestic and local generation capacity. Global deal values rose by around 57% between 2024 and 2025, reflecting strong investor appetite for large, capacity-driven transactions. We expect this momentum to continue in 2026, supported by the scale of investment required to meet AI-related power demand and strengthen system resilience.

Investors are increasingly building diversified energy portfolios across conventional generation, renewables, storage and grid infrastructure. Natural gas has re-emerged as a key transition and back-up fuel, supported by gas-fired power and LNG, while energy storage and behind-the-meter solutions are gaining traction as demand becomes more variable. Renewables continue to expand, but policy uncertainty and grid constraints are causing delays and repricing in some markets, and nuclear is regaining strategic relevance, particularly through selective exposure to small modular reactors.

Dealmakers are prioritising operating or grid-connected assets with contracted or regulated revenues, as transmission bottlenecks and interconnection risks persist. Capital is flowing into transmission and advanced grid technologies, while value creation is increasingly centred on platform strategies and long-term contracting structures, including co-location models, power purchase agreements, virtual power plants, take-privates and carveouts.

Recent transactions illustrate this shift, including Constellation Energy’s approximately $16.4bn acquisition of Calpine, aimed at creating the largest competitive power generator in the US, and NRG Energy’s approximately $12bn acquisition of a portfolio of natural gas power plants and a virtual power plant platform, strengthening its capacity offering for commercial and industrial customers.

Spotlight on the regions

Oil and gas: natural gas and LNG regain strategic momentum

Shifting power demand linked to digital and industrial growth is reshaping oil and gas M&A in 2026, with natural gas and LNG returning to the centre of investment strategies. While OPEC+’s decision to pause further production increases into early 2026 has kept oil prices broadly range-bound and downside risks persist, dealmaking is expected to remain resilient as investors prioritise assets offering scale, infrastructure optionality and stable cash flows.

Rising demand for dispatchable power from data centres is reinforcing the role of natural gas as a critical transition fuel, particularly where renewables alone cannot meet system requirements. Producers are acquiring low-cost gas assets to secure LNG feedstock, while infrastructure investors are targeting gathering systems, processing facilities and export terminals along major industrial and digital corridors. Baker Hughes’ $13.6bn acquisition of Chart Industries in 2025 reflects this shift, strengthening exposure to data centres and new energy. LNG strategies are also driving more integrated plays across upstream supply, midstream processing and export capacity.

Midstream M&A remains active as companies seek long-term infrastructure and export optionality linked to sustained global gas demand. This is reinforced by growing international demand from Europe and Asia and LNG’s strategic importance as both a commercial and geopolitical asset, illustrated by Golden Pass LNG, the $10bn QatarEnergy–ExxonMobil project converting an existing US import terminal into a major LNG export hub.

Spotlight on the regions

Mining and metals: strategically driven and set to surge

We expect mining and metals M&A to remain active in 2026, supported by the sector’s role in energy security, geopolitics and digital transformation. Despite short-term price volatility and policy uncertainty, long-term fundamentals remain strong as governments and corporates prioritise secure access to critical resources. As a result, deal activity is set to focus on consolidation, supply chain security and high-quality, long-life assets.

Rising defence spending and geopolitical tensions are driving demand for strategic minerals such as rare earths, tungsten, titanium and uranium, while reinforcing gold’s safe-haven role. At the same time, energy transition and digitalisation continue to boost demand for copper, lithium, nickel and specialty minerals, reshaping government policies and mining strategies around resilience and growth.

Rare earths add a distinct geopolitical dimension to dealmaking, as concentrated supply and export controls make transaction structures, ownership models and valuations increasingly sensitive to national security considerations. Government involvement and strategic partnerships are therefore becoming central features of rare earth-related M&A.

Gold continues to dominate M&A deal volumes, supported by high prices and strong access to capital, as illustrated by Coeur Mining’s proposed $7bn acquisition of New Gold. Copper remains a core investment theme, underlined by Anglo American’s planned merger with Teck Resources and continued sector consolidation. Beyond copper, interest is also rising in niche critical minerals such as gallium and germanium, with governments using incentives, direct investment and offtake agreements to secure domestic supply.

Spotlight on the regions

Chemicals: portfolio simplification and selective growth

Chemicals M&A in 2026 is expected to remain focused on portfolio simplification, particularly through non-core divestitures in Europe and North America. Deal activity is unfolding across three main tracks: growth investments in specialty materials linked to energy transition and the AI economy; a reactivating middle market; and restructuring-driven transactions among commodity producers facing sustained cost and demand pressures. With funding costs still elevated, both financial sponsors and strategic buyers are maintaining capital discipline, prioritising assets with strong cash generation, operational upside and integration-ready platforms, often through partnerships to support complex carveouts.

Large-scale carveouts are re-emerging as a defining feature, with groups such as BASF, BP, Corteva and Occidental advancing divestitures and spin-offs as part of portfolio rationalisation strategies. While these assets offer scale and strategic fit, execution remains critical, with stand-up readiness, stranded costs and integration planning central to value creation.

At the same time, specialty chemicals are attracting strong investor interest as enablers of AI infrastructure and the energy transition, particularly in water treatment, cooling and advanced materials for semiconductors, renewables and batteries. Mid-market roll-ups are gaining traction, while mid-cap producers continue to divest legacy assets.

By contrast, commodity producers, especially in Europe, remain under pressure from oversupply, high energy costs and weak demand, driving restructuring, asset sales and a stronger focus on cost reduction and efficiency rather than expansion-led M&A.

Spotlight on the regions

Switzerland’s EU&R M&A outlook in 2026 is shaped by rising electricity demand, system flexibility requirements, and a more volatile European power market. With AI-related load growth and electrification increasing pressure on grids and peak capacity, deal activity is expected to remain selective, focusing on assets and platforms that enhance resilience, flexibility, and long-term value rather than pure volume growth.

1) Policy clarity supports targeted investment

The Federal Act on a Secure Electricity Supply from Renewable Energy Sources has reduced policy uncertainty and should accelerate investment across renewables and enabling infrastructure. In Switzerland, this is likely to translate into targeted M&A in scalable solar, distributed energy, and development platforms rather than broad sector consolidation.

2) Grid capacity and connection speed become critical

As grid constraints increasingly determine project viability, assets that unlock capacity and improve system performance are gaining strategic importance. M&A interest is therefore shifting towards storage, flexibility aggregation, grid digitalisation, and energy management solutions that reduce congestion risk and improve reliability.

3) Hydropower’s role shifts towards flexibility

Hydropower remains Switzerland’s core system asset, with growing emphasis on flexibility, storage, and balancing rather than incremental generation. Transactions are expected to focus on pumped storage, optimisation capabilities, and portfolio structures that monetise flexibility across market cycles.

4) Partnerships and cross-border activity remain central

Given the size of the domestic market, Swiss players continue to pursue selective cross-border M&A and partnership models. These structures support risk sharing, access to scale, and faster deployment of capital, particularly in flexibility-focused assets aligned with broader European system needs.

5) Trading strength and balance-sheet optionality support proactive M&A

As a global energy and commodities trading hub, Switzerland remains an important source of capital and strategic M&A activity across EU&R value chains. While Swiss-based players face greater volatility in global trading patterns and increased competition for secure access to resources, strong balance sheets provide significant optionality—supporting proactive, opportunity-driven M&A rather than purely defensive responses to uncertainty.