Midstream Deals Review – Surge in M&A Activity: Sector Highlights
• A combined value of US$24.7 billion in Merger and Acquisition (M&A) transactions was announced in Q1 2016. This was a substantial increase from US$15.6 billion in M&A deals announced in the previous quarter. However, the number of M&A deals declined from 59 in Q4 2015 to 49 in Q1 2016. A year-on-year comparison shows a decline in the number of deals and value, compared to 66 deals worth a combined value of US$35.5 billion in Q1 2015.
• Of the total M&A deals, 35 deals, with a combined value of US$10.2 billion, were domestic and the remaining 14, with a combined value of US$14.5 billion, were cross-border transactions. A quarter-on-quarter comparison shows a decrease in both domestic and cross-border transactions in Q1 2016, compared to 40 domestic and 19 cross-border transactions in Q4 2015. Oil and gas companies spent most of their capital on acquiring companies based in the Americas, spending a total of US$22.6 billion in this region in Q1 2016.
• Capital raising, through equity offerings, debt offerings, private equity and venture financing, totaled US$33.8 billion from 36 deals in Q1 2016. The majority was from debt offerings, which accounted for 64% of the total, at US$21.7 billion, an enormous increase from the US$6.7 billion registered in Q4 2015. In terms of the number of deals, equity offerings accounted for 47%, with 17 deals in Q1 2016.
• US$33.8 billion in capital raising showed a substantial increase from the previous quarter’s total of US$14.1 billion. On a year-on-year basis, capital raising value decreased significantly in Q1 2016, compared to US$59.5 billion in Q1 2015.
• Two partnerships were registered in the oil and gas industry in Q1 2016, compared to seven in Q4 2015.
GlobalData’s “Quarterly Midstream Deals Review – Q1 2016” report is an essential source of data and trend analysis on mergers and acquisitions (M&As) and financings in the oil and gas midstream industry. The report provides detailed information on M&As, equity/debt offerings, partnerships, and PE/VC transactions registered in the midstream segment in Q1 2016. The report provides detailed comparative data on the number of deals and their value in the last five quarters segregated into deal types, segments, and geographies.
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