Foreign capital is taking an increasingly aggressive interest in Australian-listed companies, with the value of mergers and acquisitions involving ASX targets more than doubling during 2026.
LSEG data show deal value reached about US$133 billion during the first nine months of the year, up more than 100% from the comparable period in 2025 despite fewer transactions overall.
Inbound deal activity has been particularly strong, climbing more than 200% to around US$84 billion, as global investors take advantage of valuation gaps between Australian companies and comparable businesses overseas.
Resources and financials attract buyers
Resources, financial services and consumer companies have attracted significant attention, while private equity firms are increasingly willing to approach boards without prior agreement.
Recent transactions and approaches have included Warburg Pincus targeting Ingenia Communities, I Squared Capital acquiring oOh!media and competing bids for FleetPartners.
The trend comes despite higher interest rates, which would normally make leveraged acquisitions more difficult to finance.
Large global funds nevertheless retain substantial pools of capital that need to be deployed, while a weaker US dollar can make Australian assets comparatively attractive.
Artificial intelligence could provide the next wave of opportunities as investors target infrastructure, software and companies capable of improving productivity through automation.
For ASX investors, the increase in unsolicited approaches suggests an important shift: global buyers increasingly see Australian-listed companies as undervalued relative to the strategic assets and earnings they control.
