Global transport M&A improves in 2025, but investor caution remains

M&A activity in the global transport and logistics sector increased slightly during 2025, but the recovery was largely driven by a handful of mega deals, with the sector still seeing significant investor caution and underlying uncertainty.

According to the latest Transport & Logistics Barometer published by PwC Germany together with Strategy& Germany, there were 207 announced transactions in the sector last year. This was a slight increase from 199 in 2024 and represented the first time since 2022 that M&A volume had passed the 200 deal mark.

The report analyses mergers, acquisitions, sales, leveraged buyouts, privatisations and minority interest acquisitions with a transaction value greater than $50 million (currently approx. £37 million).

While there was slight improvement in deal volume during 2025, there was an even greater increase in total announced transaction value, which rose from $96.3 billion (approx. £71.2bn) in 2024 to $170.8 billion (approx. £126.2bn) last year.

However, the total value for 2025 was distorted by the planned merger of North American railway operators Norfolk Southern and Union Pacific, with the $70 billion deal accounting for more than 40 per cent of the total. The deal was the largest of 21 mega-deals worth at least $1 billion announced during 2025.

Ingo Bauer, Head of Transport, Logistics and Tourism at PwC Germany, stated that the market was still cautious and that investors were “being extremely selective and are focusing on low-risk, long-term assets”.

The preference for low-risk deals was emphasised by the prominence of infrastructure-related transactions, with deals involving airports, ports and road infrastructure generating deal value in excess of $50 billion. PwC highlighted the key role financial investors had played in this trend, participating in approximately 75 per cent of infrastructure deal value and being involved in close to half of all infrastructure deals.

In addition to caution among investors, the report also named volatile trade policies and geopolitical tensions as prominent M&A headwinds. The US’s “erratic trade and tariff policy” was identified by PwC Germany’s Burkhard Sommer as a major factor impacting long-term strategic planning and transport flows throughout the industry.

As companies sought enhanced resilience in the face of this uncertainty, joint ventures and strategic alliances became increasingly prominent, rising from 104 transactions to 193. According to PwC, this was largely driven by digitalisation in logistics and supply chain management.

PwC characterised dealmaking in the logistics sector as being defined by targeted acquisitions, minority shareholdings and strategic partnerships aimed at gaining access to new technologies and capabilities such as AI and cloud computing.

In 2026, PwC forecasts that persistent geopolitical tensions and global economic uncertainty will continue to dampen trading and deal activity and that transport infrastructure investments will remain popular among financial investors.

The firm also predicts that digitalisation will generate significant opportunities, including tech-driven alliances and smaller, focused transactions.

Ingo Bauer comments: "The most important thing for companies in the industry in 2026 will be to build resilient networks, secure diversified procurement and strengthen performance through targeted technological solutions."

Read about the key trends shaping UK logistics M&A

Find out more about broader factors that could define the M&A market in 2026

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