Food, beverage and agriculture mergers and acquisitions (M&A) are increasing after a period of reduced activity. According to ANZ’s Food for Thought – Spring 2025 report, the focus of these deals is shifting from expanding company size to gaining more control over supply chains and strategic assets. Private equity firms, corporations, and international buyers are having a significant impact on the market.
ANZ analysis indicates that FBA transactions in Australia rose in the year leading up to May 2025. The strongest growth was seen in mid-sized deals related to processing, logistics, and supply platforms.
Globally, M&A activity is also recovering but varies by region. North America has seen renewed interest from private equity investors, while Asia is focusing more on cold chain infrastructure and protein-related assets. Buyers are now prioritizing practical oversight of supply chains, infrastructure, costs, and market access instead of simply seeking scale.
Gerry Karam, ANZ Head of Institutional Food, Beverage and Agri said: “A combination of stabilising financial conditions, shifting consumer preferences and rising strategic pressures is driving the current wave of FBA M&A.
“Recent high-profile deals, such as Bunge’s merger with Viterra and Cargill’s full acquisition of Teys Australia, reflect this trend - giving global players end-to-end command of critical grain and beef supply chains. Rather than expanding for size alone, buyers are targeting assets that enhance resilience, traceability, and cost efficiency.
“Although interest rates remain elevated, their relative stability has helped restore confidence. Buyers and lenders now have clearer visibility on financing costs, improving deal modelling and debt servicing assumptions – especially for capital-intensive sectors such as agribusiness.
“Consumer demand is also shaping deal focus. Wellness categories such as functional nutrition, gut health and premium pet food continue to expand. Brands aligned with high-protein, clean-label or natural ingredient trends are attracting buyer interest – particularly where they offer export reach or pricing power.
“Australia remains a magnet for international investors, with Japanese, Middle Eastern and Southeast Asian entities active across red meat, logistics, and cold chain assets. Meanwhile, family-owned and cooperative businesses continue to play a vital role in regional economies and succession transitions.
“While valuation multiples have eased since 2021, assets with strong cashflow, export potential or operational depth continue to command solid pricing. The next wave of deals is expected to focus on mid-market businesses, digital supply chain solutions, and sustainability-linked assets.
“Today’s M&A is about more than expansion – it’s about shaping influence. From infrastructure to brand ownership buyers are seeking to de-risk operations and build agility in a changing global food system. Whether through infrastructure brand ownership or vertical integration M&A remains a way to de-risk operations and capture value in a changing global food system,” concluded Mr Karam.
Further details can be found in ANZ’s Food for Thought Spring 2025 report.