M&A dealmakers upbeat on UK infrastructure and energy

Energy and infrastructure (E&I) M&A dealmakers have an upbeat view of the UK market, research by international law firm Taylor Wessing and Bayes Business School reveals.

Coming just weeks after the UK Government published its infrastructure strategy, the ‘Dealonomics’ report offers a snapshot of sector sentiment on many of the themes now being prioritised at policy level, including capital deployment, planning reform and long-term value creation.

Analysis of deal activity by Bayes Business School at City St George’s, University of London. shows that since 2019 the energy and power sector recorded 58 cross border M&A deals over $250 million – the second-highest deal volume of any sector after technology. The average deal value was $1.6 billion, while acquirers achieved an average share price return of +11% – the highest post-deal performance across all sectors analysed.

UK seen as a top tier M&A destination

The UK ranks as the second most attractive region for M&A activity through to 2030, chosen by 78% of all dealmakers surveyed, just behind the US (82%). Among E&I specialists, that rises to 84%, signalling strong investor appetite for long-term, strategic deals in the UK.

This confidence is reinforced by near-unanimous short-term sentiment: 94% of E&I dealmakers are positive about UK M&A activity over the next 12 months, compared to 92% overall. Some 850 dealmakers across seven markets in North America, the UK and the EU.

The research reveals that dealmakers were already broadly aligned on the importance of regulatory clarity and economic resilience but also flagged blind spots that could impact delivery and performance.

UK regulation seen as a strength – unlike the US

At a time when the government is promising faster planning decisions, reduced friction for Nationally Significant Infrastructure Projects (NSIPs), and a streamlined delivery pipeline via the new National Infrastructure and Service Transformation Authority (NISTA), dealmakers appear to welcome the direction of travel.

71% of E&I respondents say UK regulation helps cross border M&A – significantly higher than the 56% who say the same about the US. Moreover, nearly two-thirds (64%) of E&I dealmakers identified the UK’s regulatory framework as a key reason the market succeeds at M&A value creation – compared to just 47% across all sectors.

Dealmakers expect E&I to dominate activity, but blind spots remain

Looking ahead, E&I is predicted to be one of the top three sectors for M&A activity through to 2030, selected by 70% of all dealmakers surveyed. Only Technology, Media & Communications ranks higher (75%), with Healthcare and Life Sciences third (58%). The outlook suggests infrastructure investment appetite is broad-based – not just within the sector itself.

While the mood is positive, risks to long-term value creation remain. For example, cybersecurity and data privacy are still underestimated by dealmakers, despite growing relevance in smart energy systems, connected infrastructure, and utilities. 51% of infrastructure respondents cited cyber risk as a top underestimated factor in deals – well above the 36% average across all sectors.

Emma Danks, Partner and Head of Corporate, UK, at Taylor Wessing, said: “Dealmakers in E&I are showing clear alignment with the government’s strategic goals. They see the UK as a stable, regulated, high-value environment for long-term investment – and they believe M&A can unlock tangible economic benefits.

“But with high-value projects come complex risks. As the government focuses on delivery capability and planning certainty, dealmakers must match that discipline with sharper post-deal strategies – especially around integration, cyber resilience, and operational readiness.”

Professor Scott Moeller, Professor in the Practice of Finance and Director of the M&A Research Centre at Bayes Business School, added: “This year’s findings show that infrastructure M&A is not just resilient – it’s optimistic. While deal volumes may remain tempered by macroeconomic factors, the strategic appetite is clearly there.

“Interestingly, dealmakers rate the UK’s regulatory environment more favourably than that of the US. That’s significant in a sector where planning, risk, and delivery timelines can make or break deal value.”

Dr Naaguesh Appadu, the senior research fellow at Bayes who analysed the data, said: “Infrastructure M&A activity in the UK is increasingly influenced by government policy, including regulatory frameworks around net zero targets. Policy clarity and stability are critical – particularly for long-term infrastructure investors. Recent shifts in planning rules, grid access and offshore wind support schemes are reshaping the investment landscape and directly impacting on deal flow, valuations and strategic appetite.”

For more information, please download Taylor Wessing’s full Dealonomics report here: https://www.taylorwessing.com/en/campaigns/international/2025/dealonomics