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Welcome to the latest PwC New Zealand M&A Quarterly Update.
In this edition, we investigate M&A activity in New Zealand for October to December 2024.
We also include commentary on the global and local M&A outlook for the year ahead.
Deal activity
Deal activity increased in Q4 2024 with 42 deals announced, up from 37 deals in the previous quarter. Overall there were 157 deals announced in 2024, down from 171 in 2023 (down ~8%), reflecting ongoing economic uncertainties. In 2025, as the economy strengthens and business confidence rises, we can expect an upswing in deal activity.
The data reveals:
55% of deals involved an overseas buyer, indicating continued strong offshore interest for New Zealand businesses.
Private equity firms accounted for 7 deals in the quarter, in line with 8 deals in the previous quarter. PE deals for 2024 totalled 26, with Business Services, Financial Services, Consumer, and TMT accounting for 18 of the 26 deals during the year (in line with general M&A sector trends).
Industrials and Chemicals, and Technology, Media, and Telecom (TMT) emerged as the most active sectors, with nine deals each. While TMT is regularly a sector with high activity, it is unusual for Industrials and Chemicals to come out on top, reflecting movement towards businesses with strong and stable cash flows during periods of economic uncertainty.
Number of deals per quarter 2021 to 2024
In Q4 2024 42 deals were announced
Number of deals by sector and buyer type
Number of deals by country and buyer type
Note:
The data has been filtered to exclude: (i) real estate transactions; (ii) early stage venture capital transactions where size is stated or estimated to be less than $1.5m; (iii) transactions announced but yet to complete; (iv) other transactions where applicable.
Sources: Mergermarket, CapitalIQ, Eikon, PwC analysis (31 December 2024)
What's the outlook for M&A in 2025?
Watch Regan Hoult, Partner, discuss how the M&A landscape may shape up this year and the global trends we’re also seeing play out in New Zealand.
The title of PwC’s Global M&A Industry Trends: 2025 - “Big deals, winning hands, and wild cards” - reflects a mood of cautious optimism about the deal landscape. But, how is this year shaping up in New Zealand?
Local M&A closely mirrors the trends we’re observing globally. As the economy strengthens and business confidence rises, we can expect an upswing in deal activity. Similarly, the themes driving M&A offshore, such as technological advancements and shifts in consumer behaviour, are also relevant to our local market.
Geopolitical tensions and market uncertainties could impact this positive trajectory however. Our advice is to stay informed and be adaptable.
2:36
Regan Hoult, PwC NZ - M&A Quarterly - Q4 2024
What’s driving deal activity?
CEOs are focused on growth and transformation, where M&A can play a key role:
- M&A as a growth strategy: Companies are pursuing acquisitions to bolster capabilities and growth. We are seeing increased interest from international companies with specific investment criteria that is often met by New Zealand companies.
- Divestitures to drive business transformation: Companies are reviewing their portfolios and divesting non-core assets. We have had many examples of this in New Zealand, with Fonterra’s planned divestment of its consumer brands business a current example. This trend is not limited to domestic firms; multinationals are also reassessing their New Zealand portfolios and looking to divest non-core segments.
Private Equity (PE) continues to be a driver of M&A activity. PE firms have significant "dry powder" ready to be deployed, with Preqin estimates that available funds for PE firms globally (excluding venture capital) exceeded US$1.6tn in 2024. The sale of existing portfolio companies will also fuel M&A activity.
While not touched on specifically in the 2025 Global Outlook, private company succession will also be a key driver of M&A activity in New Zealand. We are seeing many privately owned businesses, including large multi-generational family businesses, considering future ownership options, be that partial or full sale. An improving M&A market increases the options available in these situations.
What are the potential headwinds?
Volatile and uncertain geopolitics, as discussed in the 2025 Global Outlook, are particularly relevant for the New Zealand market. As an export orientated nation, rising cross border trade tensions provide headwinds to business confidence and M&A activity. This is certainly something that we are keeping a close eye on.
Sector themes
Some sectors are particularly active globally and locally with artificial intelligence (AI) emerging as a transformative trend across all. Similarly we are seeing growing sector convergence with investments cutting across industries. Active sectors include:
Energy and Utilities. Energy transition is a major focus, with considerable interest in deals that align technology with energy and infrastructure capabilities. For example the Chargenet deal. Read about global energy, utilities and resources sector trends here.
TMT. This sector is at the heart of the AI boom and very active locally. Significant investments being made in data centers across the country. Read about global TMT sector trends here.
Health. Local healthcare services are increasingly looking to technology as a means of improving efficiencies and delivering cost-effective, value-based care. The sector is embracing AI to drive innovation which is helping to drive investment. Read about global Health sector trends here.
Financial Services. There is continued consolidation among asset managers and insurers allowing companies to operate on a larger scale and offer a wider range of services. Fintech innovations, strategic acquisitions by traditional players and payment innovations are expected to drive transformation across the sector. Read about global Financial Services sector trends here.
By Regan Hoult, Partner, PwC New Zealand
PwC has been the number one mid-market M&A advisor in New Zealand for the last 20 years.
How PwC can help
PwC New Zealand’s Corporate Finance and M&A team is the largest in New Zealand, with a proven track record across a diverse range of sectors. With a nationwide presence led by nine partners, we offer a full range of M&A advisory services including support for divestments, acquisitions, capital raisings and strategic reviews.
Our links to the global network of PwC firms provides relationships with key global market participants, and our close relationship with our Australian colleagues ensures a comprehensive understanding of the Australasian marketplace.
Our M&A team has been ranked the number one firm in New Zealand for the amount of M&A deals by Thomson Reuters (now LSEG) for the last 20 years.
Contact us
Managing Partner, Te Waipounamu and China Business Group Lead, Canterbury, PwC New Zealand
+64 21 616 232
Partner, Deals - Corporate Finance & Infrastructure, Wellington, PwC New Zealand
+64 21 242 6075
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