More takeovers predicted in the energy sector this year
An interesting article published by Energy Live News, based upon a KPMG survey which highlights an increase of mergers and acquisitions across all energy sectors in 2016. Indeed, according to KPMG, “energy is expected to see the highest increase in M&A appetite during 2016, at 23 percent. Basic materials is at 12 percent and Consumer staples at 6 percent.” A trend to follow!
> source: www.energylivenews.com
There will be an increase of mergers and acquisitions (M&A) across all energy sectors in 2016.
That’s according to a survey by KPMG which revealed 71% out of 174,000 energy executives said they have plans to start two or more M&A transactions.
Around 53% of them estimated deals under $250 million (£175m) and 28% are considering deals between $250 million and $999 million (£699.3m).
According to the survey, the US is the most attractive destination for M&A activity, with 87% planning to invest in the country followed by Canada and China.
Despite activity heating up the valuation disparity between buyers and sellers, coupled with the general economic environment and regulatory uncertainty will present the greatest challenges to these deals, the survey added.