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Upstream oil M&A, capital hikes, near $48bn in Q4-18–Report

Upstream oil M&A, capital hikes, near $48bn in Q4-18–Report

Mubasher: The upstream oil and gas industry witnessed 305 deals with a total value of $47.9 billion in the fourth quarter of 2018. 

The value of merger and acquisition (M&A) transactions fell 41% to $27.3 billion in the final quarter of 2018, from $46.2 billion in Q3-18, according to GlobalData’s quarterly upstream M&A and capital raising deals review.

Additionally, capital raising in the upstream industry declined 43% quarter-on-quarter to $20.6 billion, versus $36 billion.

Domestic acquisitions accounted for 104 deals with total value of $14.4 billion of the total M&A transactions, while cross-border deals totalled 69 worth $12.9 billion.

Capital hikes through debt offerings plunged 48% in deal value to $16.7 billion in Q4-18, from $31.9 billion in the prior quarter. Meanwhile, capital raising through equity offerings declined 11% in terms of the number of deals but rose 33% in terms of deal value with 93 deals worth a combined $3.2 billion in the last quarter of 2018, versus 105 deals worth $2.4 billion in the previous quarter.

The upstream sector witnessed 11 private equity and venture capital transactions totalling $708.3 million in Q4-18, compared to 14 deals with a value of $1.7 billion in the last three months of 2018.

With 104 M&A transactions valued at $21.8 billion and 57 capital increase deals worth $6.5 billion, the two Americas maintained their position as the frontrunners in Q4-18, the report indicated.

Europe and the Middle East and Africa witnessed 50 M&A transactions worth $3 billion and 33 capital top-ups valued at $10.7 billion in the last quarter of 2018.

During the October-to-December period, Asia Pacific registered 19 M&A deals worth $2.6 billion and 42 capital raising deals valued at $3.3 billion.