Future M&A Activities in the Energy and Extractive Industries
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In 2023 and continuing this year there has been an increase in M&A activities in the Energy and Extractive Industries.
In reviewing the types of transactions and the nature of the acquisitions and players it was observed that traditional ‘energy’ players are diversifying their portfolios and/or expanding into new geographic territories.
Could this be the start of a new wave of M&A deals in this industry?Energy players are consolidating for economies of scale and diversifying to tackle the energy transition requirements.
I can observe continuing growing interest from PE and institutional investors in M&A activities involving renewable energy companies in Europe. Especially investors wwho had not been active in renewable energy yet are discovering this sector because of its growth potential and ESG compliance alike. However, the number of transactions is still limited. In the European Union, I think we will only see more M&A transactions in this sector once the development pipeline has been completed and the public support programmes for RE come to an end and ROI on renewable energy projects will become tighter.
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