Strategic alignment has overtaken scale as the primary driver of mergers and acquisitions (M&A) activity in the transportation and logistics (T&L) sector, according to a report by PwC (PricewaterhouseCoopers). The report noted that the sector gained traction in the second half of 2025 as buyers focused on strategic alignment, with acquirers targeting subsectors offering defensible growth, operating efficiency, and exposure to high-barrier markets.
According to data sourced from S&P Global Market Intelligence through November 30, 2025, PwC reported that North American transportation and logistics deals reached $128.8 billion, exceeding Europe’s $7.2 billion and Asia/Australia’s $29.9 billion. This marks the first time since 2021 that North America has led all regions in T&L deal value.
The proposed Union Pacific–Norfolk Southern merger has shifted investor focus toward adjacent sectors and the broader rail system, the report noted. Investors are examining companies providing track infrastructure, railcar maintenance and leasing, inspection technology, and transloading services.
“The Union Pacific–Norfolk Southern merger is expected to spur 2026 deal activity in rail infrastructure, maintenance, and transloading as investors seek growth in rail-adjacent opportunities,” said Darach Chapman, transportation and logistics deals leader at PwC. These segments offer regulatory complexity, contracted revenue streams, and a growth runway, which investors see as strategic plays to capture value from rail industry consolidation.
PwC noted that if the merger is approved by the Surface Transportation Board, it is projected to shape the investment landscape. The ruling will influence how buyers assess network access, pricing dynamics, and capital deployment. “Any required divestitures or service conditions could open new opportunities in track infrastructure, transloading, and short-line partnerships,” the report stated.
Another critical development was the continued rise of specialized logistics. The report said providers are reshaping portfolios around sectors with specialized growth and pricing power, such as pharmaceutical and healthcare logistics, dedicated transport, temperature-controlled logistics, and reverse logistics. A few deals that reflect this trend include Premier Bulk Systems acquisition of liquid bulk carrier Longhorn Transportation, and the acquisition of Brothers Auto Transport which increased PAL’s fleet capacity.
“These niches are increasingly viewed as long-term plays on demographic trends and shifting consumption patterns,” it said.
Tariff clarity is also reshaping trade flows. Shifts in trade lanes, particularly for Asia–US and Mexico–US corridors, are influencing operators to reassess utilization, margin exposure, and network design. More predictable frameworks for trade are increasing assurance in nearshoring and cross-border modeling.
“Buyers are now better able to assess long-term profitability with fewer geopolitical surprises,” it said.
Technology-enabled solutions are also gaining share, supported by improving financing conditions. The report pointed out that digital platforms that boost visibility, routing, and capacity utilization are receiving premium valuations, with M&A concentrated among software-enabled 3PLs, freight marketplaces, and automation providers. Easing interest rates and recovering freight volumes are also enabling buyers to revisit paused deals.
Looking ahead, PwC said that M&A activity will be shaped by strategic repositioning, timing, regulatory clarity, and the ability to modernize operations through target acquisitions. Buyers will pivot toward quality over quantity, while regulatory reviews and policy uncertainty may influence deal timing.
