Monthly M&A Recap: Mega-Mergers Drive Monthly Deal Value to Multi-Year High
M&A&D activity globally witnessed a massive jump during October relative to the first three quarters of 2020, spurred by big-ticket mergers in the United States and Canada. A total of ~US$41.8 B worth of deals were announced globally during October, with 44 deals being tracked by Finbrook during the month.
Cenovus Energy and Husky Energy’s US$18.0 B all-stock merger accounted for over 40% of the aggregate deal value announced globally during the month. Other significant North American and international deals announced in October included:
- ConocoPhillips’ acquisition of Permian-focused Concho Resources for ~US$13.3 B
- Pioneer Natural Resources’ all-stock offer to acquire Permian-focused Parsley Energy for ~US$7.6 B
- EQT’s purchase of Chevron’s Appalachian basin assets for US$735 MM
- The Carlyle Group’s acquisition of Occidental’s onshore Colombian interests for ~US$700 MM
Deal flow is expected to continue to gain momentum during the remainder of 2020, even as oil prices have dipped further. Majors will continue to seek opportunistic corporate and asset acquisitions, while the mid and small-cap juniors independents must sell assets or consolidate amongst themselves to survive in a protracted low oil price environment, as a second-wave of Covid-19 hits Europe and the U.S. over the winter.
To download a copy of the October 2020 recap, click here.
For more data, analysis and news on the global upstream oil & gas industry, visit www.finbrook.com.