US M&A Market Roars Back to Life in 2Q
After a quiet first quarter, U.S. mergers and acquisitions (M&A) activity roared back to life in the second quarter, anchored by three deals worth more than $5 billion each, according to a report released Thursday by PwC.
The three mega deals (defined as those worth more than $5 billion) were:
- Occidental Petroleum Corporation’s purchase of Anadarko Petroleum Corporation
- Marathon Petroleum Corporation’s purchase of Andeavor Logistics LP
- IFM Investors’ purchase of Buckeye Partners, L.P.
They represented a total of $89.2 billion. It also marked a rebound for mega deals as there were none in the first quarter of 2019, PwC reports.
“Dealmakers awoke from their first quarter slumber and got back to work during the second quarter,” said Joe Dunleavy, U.S. Energy, Utilities and Mining (EU&M) deals leader for PwC. “As deal values picked up in all subsectors, May was a merry month for the return of the megadeal.”
Second quarter deal values totaled $118.7 billion, marking the largest second quarter value since PwC started tracking deals in 2002. It was also a 519 percent increase from first quarter 2019.
For the first time since first quarter 2018, upstream transactions drove deal value at 62 percent.
That was due in large part to the Oxy-Anadarko deal. In a report released earlier this month, Drillinginfo warned against mistaking second quarter activity for a full recovery.
Regarding private equity, financial investors announced 12 deals worth $23 billion in second quarter of 2019, the highest since third quarter of 2006. Private equity deal value was up 262 percent year-over-year.
But with the second quarter’s return of mega deals, private equity contributions fell in terms of deal volume and value.
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