M&A is back in FB&A

In July, Australia’s largest contract chicken grower was acquired by a global private equity powerhouse. In the same month, one of the world’s top grain traders completed a mega-merger with a rival, reshaping global export flows while consolidating control of essential infrastructure. That was after a multinational food company announced it will be taking full ownership of one of the country’s biggest beef processors.

These are not isolated events. They reflect a broader resurgence in mergers and acquisition (M&A) activity across food, beverage and agribusiness (FBA). After a quieter period marked by rising interest rates and cost uncertainty, deal activity is picking up.

The year to May 2025 was a busy one for FBA transactions in Australia, with notable strength in mid-sized deals involving processing, logistics and supply platforms. Globally, deal activity has also shown signs of recovery, though patterns vary by region and sector - with North America seeing renewed private equity interest and Asia focusing more on cold chain and protein assets.

What has changed is the logic? Buyers are no longer chasing scale for its own sake. They are seeking practical control - of supply, of infrastructure, of cost and of access to markets, contributing to higher yields in competitive markets.

With purpose

In July 2025, United States agribusiness giant Bunge completed its merger with Viterra, creating one of the world’s largest crop trading and oilseed processing companies. Bunge paid about $US8.2 billion ($A12.5 billion), valuing the combined business at roughly $US34 billion ($A50 billion).

In Australia, the merger gives Bunge control of Viterra’s South Australian bulk grain network, including port and storage assets critical to exports.

In June 2025, Cargill agreed to acquire full ownership of Teys Australia (from a 50:50 joint venture), one of the country’s largest beef processors, with completion subject to regulatory approvals. The move consolidated its Australian operations across feedlots, abattoirs and export channels. Rather than simply increasing size, Cargill gained end-to-end control in a supply chain where traceability, sustainability and logistics are becoming more commercially critical.

PAG acquired Patties Foods and Vesco Foods from PEP in 2022. Private equity groups such as Quadrant remain active in prepared meals and chilled food – for example, My Muscle Chef, which is now exploring a sale. KKR’s 2025 acquisition of poultry producer ProTen  - Australia’s largest contract chicken grower, with more than 700 broiler sheds across 60 farms in five states - reflects growing private equity interest in infrastructure-aligned agribusinesses.

A combination of stabilising financial conditions, shifting consumer preferences and rising strategic pressures is driving the current wave of FBA M&A. 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.

Corporate buyers are repositioning their portfolios. Coles completed the June 2024 purchase of two Saputo fresh-milk plants (Laverton North and Erskine Park), while the Devondale and Liddells brands remained with Saputo. The move deepened Coles’ alignment with private label supply in chilled dairy - a segment where consistency, cost control and domestic sourcing are increasingly strategic.

Brands aligned with high-protein, clean-label or natural ingredient trends are attracting buyer interest - particularly where they offer export reach or pricing power.

Cross-border capital remains active. Japanese-owned NH Foods maintains a strong presence in beef processing, while Middle Eastern entities such as SALIC (Saudi Agricultural and Livestock Investment Company) have invested in Australian red meat platforms. Gulf investors including AD Ports Group have been building logistics capacity globally - and while recent focus has been Africa and South Asia, Australia remains attractive due to its production reliability, export access and stable regulation.

Broad range

Australia’s FBA M&A landscape features an increasingly broad range of investors and acquirers - including private equity firms, pension funds, corporates, family companies and offshore strategic groups.

One area of focus for private equity firms is midsized businesses with steady profits, growing demand in their product category, or valuable assets such as processing plants and logistics infrastructure that give them a competitive edge.

Private-equity firms are increasingly targeting animal-protein and meat-processing infrastructure in Australia, such as Allegro’s acquisition of pork processor BE Campbell and KKR’s acquisition of broiler-grower ProTen. These transactions reflect the broader momentum across food-related assets where processing, logistics and supply-chain control matter.

Corporate buyers are using M&A to consolidate supply chain networks. Coles’ acquisition of Saputo’s fresh-milk plants reflects retailer interest in production control. Corporate buyers are also expanding via vertical integration in horticulture, with acquisitions in citrus and table grapes aligning with succession planning and export growth.

At the farmgate, M&A has focused on permanent crops and horticulture. Assets such as almond and macadamia orchards attract capital because their production lifecycle matches long-term investment horizons. Ownership of water entitlements reduces the biggest operational risk and allows cropping and income models to be forecast with greater certainty.

Other transactions have targeted property-type conversion, shifting grazing land into cropping to capture valuation uplift. Consolidation of farming properties has also continued as Australia’s ageing farming population takes the opportunity to sell.

The question now is whether land values will keep rising - recent transactions in cattle assets suggest future growth may be limited, shifting the focus toward yield, rather than capital gain.

Globally, similar dynamics are playing out. In the US and Europe, M&A is being shaped by consumer demand for health, wellness and sustainability - leading to acquisitions in functional foods, plant-based proteins and clean-label brands.

Nestlé Health Science and Unilever have both expanded through targeted acquisitions in collagen, gut health and hydration.

In Asia, buyers are focusing on food security, regional logistics and protein supply. South-east Asian investors are active in cold storage, aquaculture and packaged food. Chinese companies have shown renewed interest in strategic assets that support outbound supply or foodservice channels.

Deeply integrated

Australia’s food, beverage and agribusiness landscape is deeply integrated into global supply chains. Many of the largest first-stage processing assets are now backed by international capital - reflecting Australia’s status as a reliable producer in a globalised food system and a destination for long-term investment.

At the same time, Australia remains home to a strong cohort of large family-owned businesses, co-operatives and industry-based marketers across food and meat processing, grain and cotton marketing, and horticulture.

Valuation multiples across food, beverage and agribusiness have eased since the 2021 highs - a period marked by low interest rates, abundant capital and strong investor demand for defensive, cash-generating assets.

At the time, buyers were competing aggressively for resilient platforms, particularly those exposed to staple consumption or locked-in contracts. While multiples have moderated, pricing remains solid in asset classes with stable cashflow, growth potential or export alignment.

Across all segments, businesses that combine brand value with operational control are drawing the strongest buyer interest. That includes chilled food companies that manage their own warehousing and distribution, or processors with export-accredited cold chain infrastructure.

In a more selective M&A environment, integration and reliability are often more valuable than simple headline scale.

Next wave

The next wave of deals is likely to focus on the middle market. Many large family businesses are now weighing retirement or succession options.

Others are preparing for sale in a market where offshore capital remains active. This suggests further consolidation of single-site processors, secondary distribution and regional supply chains.

In parallel, more transactions will target technology, supply chain digitisation and sustainability. GrainCorp’s launch of its CropConnect digital trading platform in 2022 reflected rising interest in inventory optimisation and food traceability.

Expansion into offshore markets - particularly the United States, New Zealand and Asia - will also be part of the agenda.

In earlier waves of food and agribusiness M&A, growth was often measured by physical footprint - more farms, more production, more brands on shelf. The focus now is more strategic.

Recent transactions - including Bunge’s merger with Viterra and Cargill’s full acquisition of Teys - reflect a growing emphasis on integration and supply chain efficiency.

That control can take many forms - securing essential inputs, owning infrastructure that connects production to market, or reducing exposure to supply and cost disruptions in high-volume categories. Rather than chasing size for its own sake, buyers are targeting assets that improve resilience, integration and decision-making speed.

Across regions, a common thread is emerging buyers want more visibility over how food is made, moved and delivered. 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.

Gerius Karam is Head of Food, Beverage & Agribusiness at ANZ Institutional

This is an edited excerpt from the Spring 2025 edition of the ANZ report “Food for Thought”