Report: Fewer M&A Deals in 1H 2018, but Higher Value

Report: Fewer M&A Deals in 1H 2018, but Higher Value
Though the number of deals in the Energy, Mining and Utilities sector were fewer in the first half of the year, overall deal value trickled up.

Global M&A activity for Energy, Mining and Utilities (EMU) sectors closed out 1H 2018 with fewer deals, but overall higher deal value when compared to a typical half-year in 2016-2017, according to the latest report by Mergermarket, an Acuris Company.    

In 1H 2018, there were 680 deals valued at $341.1 billion. It marked both the lowest deal count since 1H 2015 and the highest first-half deal value since 1H 2007.

Five megadeals (valued at more than $10 billion) played a large role in the boost of deal value.

Activity in the U.S.  

The U.S. focused on domestic consolidation in 1H 2018, with 24 outbound EMU transactions with U.S. buyers for a total value of $7.5 billion. Domestic M&A reached 184 deals valued at $134.4 billion, the highest deal value and third-highest deal count for domestic EMU deals on record in the United States.  

Marathon Petroleum Corp.’s agreement to purchase oil refiner Andeavor for $31.3 billion was the largest domestic EMU deal in the United States, according to Mergermarket.

According to Mergermarket intelligence, while the mining sector hasn’t been a focal point of activity in 1H 2018, there could be a turnaround in that trend for the remainder of the year. There may be fewer deals, but larger in value. For example, the announcement of Enbridge selling 19 natural gas gathering and processing plants to Brookfield for $3.3 billion is a sizeable deal kicking off 2H 2018.


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