Energy Merger & Acquisition Deals Ease Off, Following A Late 2012 Rush

The three-month period ended June 30 saw nearly forty merger and acquisition deals with values greater than $50 million, accounting for a total deal value of more than $17 billion.

That’s down from more than fifty deals in the second quarter of 2012, worth a combined $30 billion.

Doug Meier is the Houston-based head of PwC’s oil & gas practice. He says part of the reason for the slowdown is that energy companies are busy digesting M&A deals pushed through at the end of last year.

“Transaction activity in the final quarter of 2012 was accelerated for two reasons: one, concern about uncertainty over the fiscal cliff, plus uncertainty around the tax laws and potential changes in the tax laws in 2013.”

Meier says potential buyers are also spending more time assessing which deals are most likely to pay off over the long run. He says, despite the fall in deal volume and value, interest in energy M&A transactions remains strong.

 

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