M&A activity among energy firms hits record highs

M&A activity among energy firms hits record highs

Mergers and Acquisitions (M&A) deals between companies in the energy industry have increased by 36% in the first six weeks of 2017, compared to the same period in the previous year.

Nearly US$66 billion in M&A deals have already been announced this year, representing the best start to a calendar year since records began in the 1980s.

Among a host of activity in the industry, the largest transaction recorded so far is a $9.3 billion purchase by Oneok (NYSE:OKE), a US-based oil pipeline firm, of a final 22% share in a pipeline partnership.

Other multinational oil majors involved in deals this year include, ExxonMobil (NYSE:XOM) and Royal Dutch Shell (LSE:RDSB), with the former completing a $6.6 billion purchase from Bopco, while the latter sold its assets in the North Sea to Chrysaor for $3.8 billion.

Analysis carried out by Thomson Reuters also revealed that activity in the commodity sector over the last 12 months totalled $629 billion, an increase of 17% compared to the equivalent period one year prior.