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July 30, 2019

Oil and gas equipment and services M&A activity up 121% on last quarter

A year-on-year comparison saw an increase of 17 per cent in the number of deals and 193 per cent in value, compared with Q2 2018, when there were 93 deals worth a combined value of $4 billion.

By GlobalData Energy

A combined value of $11.7 billion in mergers and acquisitions (M&A) were announced in the oil and gas equipment and services sector in Q2 2019, according to a recent report by GlobalData.

Services and equipment M&A activity

The report, entitled “Quarterly Equipment and Services M&A Deals Review – Q2 2019”, found this combined value represents a 121 per cent increase from the $5.3 billion in M&A deals announced in the previous quarter.

A year-on-year comparison saw an increase of 17 per cent in the number of deals and 193 per cent in value, compared with Q2 2018, when there were 93 deals worth a combined value of $4 billion.

Waste Management’s entry into a definitive agreement to acquire all outstanding shares of Advanced Disposal Services, a provider of oil and gas waste disposal services, for $33.15 per share in cash (representing a total enterprise value of $4.9 billion), was the top deal registered in Q2 2019. Centerview Partners LLC is serving as a financial adviser, and Simpson Thacher & Bartlett LLP and Vedder Price P.C. are serving as Waste Management’s legal counsel. UBS Investment Bank is serving as exclusive financial adviser to Advanced Disposal, and Shearman & Sterling LLP and Mayer Brown LLP are serving as Advanced Disposal’s legal counsel.

Equipment and services M&A deal value and count, Q2 2019

Source: Deals Analytics, GlobalData Oil and Gas     © GlobalData

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On the volume front, the number of M&A decreased marginally from 110 deals in Q1 2019 to 109 in Q2 2019, of which 38 were cross border transactions and the remaining 71 were domestic transactions. North America was the destination of choice for cross-border M&A activity in Q2 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 and deal value in Q2 2019, with 58 per cent and 87 per cent shares respectively, registering 66 deals with a combined value of $10.5 billion in Q2 2019. Europe accounted for 21 per cent share in Q2 2019, comprising 23 acquisitions, of which 13 were cross-border and the remaining 10 were domestic acquisitions, while Asia accounted for 11 global deals, or 10 per cent in Q2 2019, of which seven were cross-border acquisitions and the remaining four were domestic acquisitions. The Middle East and Africa each registered five deals respectively in Q2 2019, and South America and Oceania each accounted for 2 per cent of global deals or two deals.

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