A total of 362 deals with a combined value of US$80.9bn were registered in the upstream oil and gas industry in Q3 2018, according to GlobalData, a leading data and analytics company.
Of the total value, US$44.5bn was registered in mergers and acquisitions (M&A) in Q3 2018, representing a significant increase of 77% from the US$25.1bn in M&A deals announced in Q2 2018. On the capital raising front, a total value of US$36.5bn in capital raising was announced in the upstream sector in Q3 2018, an increase of 19% from the US$30.7bn in capital raising announced in the previous quarter.
The company’s latest report: ‘Quarterly Upstream M&A and Capital Raising Deals Review – Q3 2018’ states that a total of 111 M&A deals, with a combined value of US$13bn, were recorded in the conventional segment, and 88 deals, with a combined value of US$31.5bn, were recorded in the unconventional segment, in the quarter.
Of the total M&A deals, 156 deals, with a combined value of US$37.5bn, were domestic acquisitions and the remaining 43, with a combined value of US$7bn, were cross-border transactions. A quarter-on-quarter comparison shows a substantial increase in domestic transaction values in Q3 2018, compared to US$17.6bn in Q2 2018. However, cross-border transaction values decreased by 7% in Q3 2018 compared to US$7.5bn in Q2 2018.
Capital raising, through debt offerings, witnessed an increase of 20% in deal value, recording US$32.4bn in Q3 2018, compared with US$27.1bn in Q2 2018. However, the number of debt offering deals decreased by 10% from 60 in Q2 2018 to 54 deals in Q3 2018.
Capital raising, through equity offerings, registered a decrease of 3% in the number of deals and 8% in deal value with 98 deals, of a combined value of US$2.4bn, in Q3 2018, compared with 101 deals, of a combined value of US$2.6bn, in the previous quarter. 11 private equity/venture capital deals, with a combined value of US$1.7bn, were recorded in the upstream industry in Q3 2018, compared with 12 deals, with a combined value of US$950.3m, in Q2 2018.
Americas remained the frontrunner for M&A and capital raising, registering 132 M&A deals, with a total value of US$32.6bn; and 68 capital raising transactions worth US$20.6bn in Q3 2018. EMEA registered 45 M&A deals of a combined value of US$8.3bn, and 38 capital raising deals worth US$13.4bn; while APAC registered 22 M&A deals of a combined value of US$3.7bn and 57 capital raising deals worth US$2.5bn in Q3 2018.
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