North Americans bargain hunt Down Under: Report

North Americans' merger and acquisition (M&A) appetite for Australian companies will only intensify in 2027 as they chase undervalued assets, according to a new report.

Ashurst Perkins Coie's newly released Global M&A Review predicts that North American companies such as Brookfield and Blackstone will continue to hunt for local companies, supported by access to capital and a weaker Australian dollar.

The law firm also expects foreign buyers and private capital will keep pursuing energy, resources, infrastructure, logistics, digital infrastructure and premium industrial assets as target sectors.

Meanwhile, superannuation funds, as well as capital from global pension funds, are tipped to help sustain resilient deal activity next year.

Despite market uncertainty and volatility, Australia was highlighted as one of the leading markets globally for large and strategic M&A transactions in 2026.

Some of the key transactions that either completed or were announced included Brookfield and GIC's $5.8 billion acquisition of National Storage REIT, Swedish private equity giant EQT's $9.3 billion take-private deal for Cleanaway Waste Management and Canada's Brookfield acquisition of plumbing and heating solutions manufacturer Reliance Worldwide.

TAL Daiichi Life Australia's attempt to take over Challenger was rejected, but the latter hinted it is leaving the door open to potential negotiations.

Bain Capital's acquisition of Perpetual's wealth management business for $550 million is nearing the finish line.

Private capital remains a key driver of M&A activity in Australia, the analysis found, with this cohort accounting for about 30% of announced public M&A deals with the total value reaching $25 billion. "That momentum is evident in the take-privates of National Storage REIT and Qube, as well as Blackstone's $1.2 billion acquisition of Hamilton Island.

"EQT's successive proposals for Perpetual and proposed acquisition of Cleanaway, Brookfield's proposed acquisition of Reliance Worldwide and I Squared Capital's $1.70 per share proposed take-private of oOh!media (and the proposals for oOh!media from Pacific Equity Partners and Oaktree Capital Management) further illustrate sponsors' willingness to pursue listed Australian companies," the report read.

In the last 12 months, the study noted that American bidders have been the most active, accounting for 44% of completed deals based on country of origin.

Notable transactions include specialty insurance distributor Amwins Group's and a KKR consortium's $7.1 billion proposal for Steadfast Group. Singapore comes in second at 32% followed by Canada at 8%.