Quarterly Equipment and Services M&A Deals Review – Q2 2020

GlobalData Energy 22 July 2020 (Last Updated July 22nd, 2020 12:43)

Quarterly Equipment and Services M&A Deals Review – Q2 2020

GlobalData’s latest report, ‘Quarterly Equipment and Services M&A Deals Review – Q2 2020’, shows that a combined value of $3.1bn in mergers and acquisitions (M&A) were announced in the equipment and services sector in Q2 2020. This was a decrease of 37 percent from the $4.9bn in M&A deals announced in the previous quarter. A year-on-year comparison witnessed a decrease of 14% in the number of deals and a significant decrease of 74% in value, compared with Q2 2019, when there were 123 deals worth a combined value of $11.9bn.

Oldendorff’s acquisition of three bulk carriers, namely MV Trust Agility, MV Trust Integrity, and MV Trust Amity, from Trust Energy Resources for $212.8m was one of the top deals registered in Q2 2020. The MV Trust Agility is a 2011-built, Singapore-flagged bulk carrier, with a gross tonnage of 94,817t and deadweight tonnage of 180,585t. The MV Trust Integrity is a 2011-built, Singapore-flagged bulk carrier, with a gross tonnage of 94,817t and deadweight tonnage of 180,586t. The MV Trust Amity is a 2016-built, Singapore-flagged bulk carrier, with a gross tonnage of 107,666t and deadweight tonnage of 209,325t.

On the volume front, the number of M&As decreased marginally from 107 deals in Q1 2020 to 106 in Q2 2020, of which 54 were cross border transactions and the remaining 52 were domestic transactions. North America was the destination of choice for cross-border M&A activity in Q2 2020, recording 18 cross-border transactions in the quarter.

North America led the global acquisitions market in terms of the number of deals in Q2 2020, with a 41% share, registering 44 deals, of a combined value of $278.9m. Europe accounted for 26% share in Q2 2020, comprising 28 acquisitions, of which 17 were cross-border and the remaining 11 were domestic acquisitions, while Asia accounted for 15 global deals, or 14% in Q2 2020, of which eight were domestic acquisitions and the remaining seven were cross-border transactions. Africa and Middle East registered eight and seven deals respectively in Q2 2020; and Oceania accounted for five percent of global deals, or five deals in the quarter.