Energy deals is PwC's quarterly analysis of merger and acquisition (M&A) activity in the US oil and gas industry. It provides an overview of the most recent M&A results and our expectations for future deal activity.
The Joint Ventures and Strategic Alliances paper discusses the current landscape for JVs and alliances, factors motivating their use, associated challenges, and leading practices for executing successful arrangements.
Driven by substantial megadeal growth (more than 284 percent by value as compared to 4Q15), average deal value in the industrial manufacturing sector increased to $691 million, despite a decline in volume in the first quarter.
Despite decreased activity, deal value in the Chemicals sector for the first quarter of 2016 increased by more than two and half times on a year-over-year basis, bringing the average deal value up to $1.9 billion.
2015 was a record year in M&A for the A&D sector with a total deal value of $61.7 billion, nearly three times the value in 2014 and more than 50 percent higher than the previous record year in 2007.
Deal value increased by 26 percent on a year-over-year basis (rising to $37.6 billion), despite a decline in both volume and value on a sequential basis in the first quarter of 2016.
Deal activity improved in the E&C sector in 1Q16, as volume and value increased year-over-year for the first quarter. However, both total and average value decreased in a sequential basis.
Deal value increased both sequentially and year-over-year in the metals sector in the first quarter, driven by a substantial increase in Megadeal activity and despite a decline in volume over the previous quarter.
In this recorded webcast, we discuss the current trends in oil and gas deal-making.
In this quarter’s analysis, we saw an overall drop in power and utilities deal activity as potential acquirers took stock of recent valuations and associated premiums in the evaluation of future growth opportunities.