Market Spotlight
Contributed by Mergermarket, a Partner of M&A Leadership Council
Companies in the oil & gas and coal sectors have experienced a harsh about-face in their prospects over the last 18 months, as the price of commodities has plummeted. The sudden turn of events has had a significant effect on M&A activity in the energy industry, which saw an almost 7% drop in value in 2015 along with 357 fewer deals year-on-year. As fossil fuel companies see their debts balloon and their profits shrivel, M&A activity has become centered more around divestments and bankruptcy proceedings.
According to this month’s Venue® Market Spotlight alternative energy firms are continuing to remain active in terms of deal-making, as cited by 72% of respondents who expect to see a significant increase in activity.
RR Donnelly commissioned Mergermarket to interview professionals based in the US, Europe and Asia-Pacific to gain insight on their opinions regarding energy deal-making activity for the next 12 months.