Energy & Infrastructure M&A 2025

Introduction

The Canadian political and economic environment in 2025 is defined by geopolitical instability, shifting trade alliances and tighter regulatory oversight. Interest rates remain elevated, which raises the cost of capital, narrows debt capacity and places a premium on stable cash flows. Existing and proposed US tariffs on Canadian imports have pushed some Canadian buyers to pursue defensive acquisitions in the United States to localise production and reduce tariff exposure while other entities with Canadian operations have sought to alter their logistics chains to minimise the impacts of tariffs and the associated uncertainties. Shifting trade alliances are prompting the federal government to recalibrate economic policy and to channel public capital toward projects of national importance.