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Global M&A Trends in Energy, Utilities and Resources: 2022 Mid-Year Update

Capital availability, energy transition, supply chain security and value opportunities will support robust M&A activity in the near to medium term.

Deal activity in the energy, utilities and resources sectors in the first six months of 2022 has been lower than we expected it to be at the beginning of the year, in terms of both the number of deals and the time it is taking to agree to a value and execute a deal.

The current lower velocity is unsurprising, given the uncertainty in deal pricing caused by inflation, interest rates, geopolitical unrest and volatility in commodity prices—all of which have increased since the beginning of the year. However, despite this uncertainty, we expect M&A activity to be robust in the near to medium term due to:

  • an ample supply of capital
  • the continuing acceleration of energy transition
  • a growing desire for supply chain security
  • a perception of value opportunities emerging in the current macroeconomic environment.

We continue to closely monitor discussions around the ethical stewardship of carbon-intensive assets and its potential impact on M&A activity. For example, although a number of companies have already taken steps to demerge or divest their more carbon-intensive assets from their other operations, growing unease that such actions can lead to higher carbon emissions and for longer has led to adverse investor reaction. Potential sellers of such assets will need to rigorously engage with a wide range of stakeholders and adjust their M&A strategy accordingly to avoid accusations of greenwashing and the risk of derailment of their divestment processes.

‘Uncertainty has given dealmakers good reason to draw breath, but this won’t be for long as climate and supply chain imperatives—plus the desire to pursue value opportunities—will quickly have them back at the table.’

Wim BlomGlobal Energy Utilities and Resources Deals Leader, Partner, PwC Australia

Mid-year M&A outlook for energy, utilities and resources

Recent global and macroeconomic events have put an even stronger spotlight on energy costs and availability amid the larger energy-transition landscape. Those companies with M&A strategies well-aligned to their corporate vision—particularly in high-growth areas such as renewables, carbon capture, battery storage, transmission infrastructure and other clean technologies—will be best placed to create value and sustained outcomes for stakeholders in the medium to long term.

 

Explore our local M&A trends in Energy, Utilities and Resources from the following countries:

Want to know the M&A trends we expected in Energy, Utilities and Resources at the beginning of 2022?

Read our 2022 Outlook

Contact us

Wim Blom

Wim Blom

Global Energy, Utilities & Resources Deals Leader, Partner, PwC Australia

Louise Roach

Louise Roach

Director, PwC Australia

Llewellyn Sterling

Llewellyn Sterling

Director, PwC Canada

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Ross Hart

Ross Hart

Partner, PwC Netherlands

Chris Durieux

Chris Durieux

Partner, PwC Netherlands

Drew Stevenson

Drew Stevenson

Partner, Energy, Utilities and Resources UK Leader of Industry, PwC United Kingdom

Neil Leppard

Neil Leppard

Director, PwC United Kingdom

Jason Higgs

Jason Higgs

Partner, PwC United Kingdom

Franklin  ­ Zhai

Franklin ­ Zhai

China Energy Deals Leader, Partner, PwC China

Michelle Grant

Michelle Grant

Canada Energy, Utilities, Mining and Industrials Deals Leader, Partner, PwC Canada

Seenu Akunuri

Seenu Akunuri

US Energy, Utilities and Resources Deals Leader, Principal, PwC United States

Eric Douheret

Eric Douheret

Partner, PwC France

Tel: +33 1 5657 8024

Jeremy Fago

Jeremy Fago

Principal, PwC United States

Jonathan Lee

Jonathan Lee

Partner, PwC United Kingdom

Lauren Bermack

Lauren Bermack

Partner, PwC Canada

Marc Schmidli

Marc Schmidli

Switzerland Deals Leader, Partner, PwC Switzerland

Sammy Lai

Sammy Lai

Partner, PwC China

Steffen Apfel

Steffen Apfel

Partner, PwC Germany

Steve Cheng

Steve Cheng

Partner, PwC China

Volker Fitzner

Volker Fitzner

Global Leader, Chemicals, Partner, PwC Germany

Paul Hennessy

Paul Hennessy

Partner, PwC Australia

Manuel Berger

Manuel Berger

Director, PwC Switzerland

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