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November 4, 2019updated 05 Nov 2019 2:17pm

Equipment and services M&A deals in Q3 mark an 83% fall from Q2

A year-on-year comparison saw a decrease of 21 per cent in the number of deals and 79 per cent in value, compared with Q3 2018.

By GlobalData Energy

A combined value of US$2.1bn in mergers and acquisitions (M&A) were announced in the oil and gas equipment and services sector in Q3 2019, according to GlobalData’s latest report, Quarterly Equipment and Services M&A Deals Review – Q3 2019.

This was a substantial decrease of 83 per cent from the US$12bn in M&A deals announced in the previous quarter. A year-on-year comparison saw a decrease of 21 per cent in the number of deals and 79 per cent in value, compared with Q3 2018, when there were 92 deals worth a combined value of US$10.1bn.

DP World’s acquisition of 100 per cent stake in Topaz Energy and Marine from Renaissance Services and Standard Chartered for an enterprise value of US$1.1bn, was the top deal registered in Q3 2019. Topaz is an international critical logistics and solutions provider to the global energy industry. The company operates a modern, versatile fleet of 117 vessels, predominantly in the Caspian Sea, MENA and West Africa regions. Deutsche Bank AG acted as adviser to DP World, while Rothschild and Co acted as adviser to Topaz, according to a source familiar with the matter.

Equipment and Services M&A Deal Value and Count, Q3 2019

On the volume front, the number of M&A decreased by 35 per cent from 113 deals in Q2 2019 to 73 in Q3 2019, of which 27 were cross border transactions and the remaining 46 were domestic transactions. Europe was the destination of choice for cross-border M&A activity in Q3 2019, recording 14 cross-border transactions in the quarter.

Regionally, North America led the global M&A market in terms of the number of deals in Q3 2019, with a 60 per cent share, registering 45 deals with a combined value of US$1bn in Q3 2019. Europe accounted for 26 per cent share in Q3 2019, comprising 19 acquisitions, of which 14 were cross-border and the remaining five were domestic acquisitions, while Asia accounted for five global deals, or 7 per cent in Q3 2019, of which four were domestic acquisitions and the remaining one was a cross-border transaction. The Middle East and South America each registered one deal in Q3 2019, and Oceania accounted for 5 per cent of global deals, or four deals, in the quarter.

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