Weak commodity environment to drive increase in oil & gas sector M&A, Brunswick survey finds
The level of M&A in the oil & gas sector is expected to increase – 62% of respondents are predicting this increase, a 10 percentage point jump up from last year’s survey. Key drivers of these deals are expected to be falling energy prices, distressed sales, and bankruptcies.
A majority of respondents, including most of those who see M&A in the sector decreasing, say the current regulatory environment will constrain global M&A activity. This is compared to just one-third who see the regulatory environment as an enabler of more M&A.
The survey was distributed and analyzed by Brunswick Insight and included the views of 106 bankers, industry advisors, investment managers, and analysts specializing in the energy sector across the U.S.