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May 17, 2019updated 10 Nov 2021 4:54am

M&A activity in equipment and services sector down by 75% in Q1 2019 in value from previous quarter

Europe, Middle East, and Africa (EMEA) was the destination of choice for cross-border M&A activity in Q1 2019.

By GlobalData Energy

A combined value of US$3.9 billion in mergers and acquisitions (M&A) was announced in the equipment and services sector in Q1 2019, according to GlobalData’s latest report.

M&A oil and gas Q1 2019

This was a substantial decrease of 75% from the US$15.9 billion in M&A deals announced in the previous quarter. A year-on-year comparison shows an increase of 7% in the number of deals and a decrease of 47% in value, compared with Q1 2018, when there were 94 deals worth a combined value of US$7.4 billion.

Tenaris’ agreement to acquire IPSCO Tubulars, from PAO TMK, for US$1.21 billion, was the top deal registered in Q1 2019. IPSCO Tubulars is a producer of seamless and welded OCTG and line pipe products. The acquisition will enhance Tenaris’s position and local manufacturing presence in the US market, extending its product offering and expanding its service footprint. TMK was advised by BTIG, LLC in the transaction.

Equipment and services M&A deal value and count, Q1 2019

Source: Deals Analytics, GlobalData Oil and Gas

On the volume front, the number of M&A deals decreased by 13%, from 116 deals in Q4 2018 to 101 in Q1 2019, of which 37 were cross border transactions and the remaining 64 were domestic transactions.

Europe, Middle East, and Africa (EMEA) was the destination of choice for cross-border M&A activity in Q1 2019, recording 19 cross-border transactions in the quarter.

Regionally, the Americas led the global M&A market in terms of volume and value, with 63% and 71% shares, registering 65 deals with a combined value of US$2.8 billion in Q1 2019.

The EMEA region accounted for 26% share in Q1 2019, comprising 26 acquisitions, of which 19 were cross-border and the remaining seven were domestic acquisitions. Asia-Pacific region accounted for 13 global deals, or 13% in Q1 2019, of which six were cross-border acquisitions and the remaining seven were domestic acquisitions.

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