December 16 2025 | M&A Advisors | Deals | Energy & Industrials
According to Ansarada’s FY2025 Deal Indicators Report, Australia’s industrials M&A activity was down on the previous year, with a 4% decrease in year-on-year growth.
The market was significantly slower in New Zealand where, despite a 200% surge in the final quarter, year-on-year growth was down 40%.
The bottomless need for building materials
The Australian continent is arguably one of the world’s largest construction sites. Late last year, the country’s five year, major infrastructure pipeline stood at $213 billion , courtesy of government projects across all states and territories.
While the public sector spends up big on transport, utilities and social infrastructure, Australia’s ongoing housing crisis has created sustained demand for new housing stock. In August 2023 the National Cabinet set a construction target of 1.2 million well located new homes by 2029.
Against this backdrop, investors have seen advantages in securing processing and supply capabilities in the region. That’s given rise to some sizeable transactions spanning the metal processing and construction materials industries.
Major deals secure vital construction supplies
Among those transactions was Alcoa Corp’s $3 billion acquisition of Alumina , completed in August 2024. The former’s two bauxite mines and three alumina refineries in Western Australia , responsible for around 45% of the country’s alumina production, formed a key part of the deal. Meanwhile, the company’s Portland Aluminium Smelter in Victoria turns off around 19% of the nation’s supplies of the material.
Similarly, in the construction materials space, French giant Saint-Gobain laid out $A4.3 billion to acquire CSR Limited . A stalwart of the Australian industrials sector for almost two centuries, its stable of iconic brands included roofing tile supplier Monier and plasterboard and finishings manufacturer CSR Gyprock.
Completed in July 2024, the transaction also handed Saint-Gobain a 25% share in the Tomago Aluminium Smelter in the Hunter Valley.
Saint-Gobain chief executive Benoit Bazin said the acquisition would strengthen its presence in the fast-growing Asia-Pacific markets .
“We see a tremendous opportunity to build on CSR’s strengths to further accelerate its growth in the region,” Benoit stated.
Cementing ties in Brickworks
Meanwhile, June 2025 brought the announcement of a $14 billion merger between two closely aligned businesses: diversified investment house Soul Patts and Brickworks , the country’s largest brickmaking business in which it has long held a sizeable stake.
In common with the other major transactions of FY2025, this deal underscores the domestic demand for building materials, and the opportunity this presents for well positioned local suppliers with the capacity to deliver.
With a strong pipeline of projects stretching into the next decade, Australia’s infrastructure and construction sector will retain its keen appetite for metals and construction materials for the foreseeable future. Businesses that can supply them will continue to pique the interest of domestic and international investors, with more major deals likely to emerge in 2026 and beyond.
