Global oil companies’ merger and acquisition activity was significantly boosted by the announced merger between Royal Dutch Shell and BG Group.
The merger accounted for $84 billion ($76 billion) of the $115 billion quarterly total in 2015. The second quarter of 2015 exhibited the largest amount of M&A activity by value since the fourth-quarter of 2012.
However with the merger, the value of deals in the second quarter of 2015 would have only totalled $31 billion ($28 billion), $18 billion higher than the first quarter of 2015, which was the lowest since at least 2008.
According to the EIA, who compiled data, the 137 deals announced was the lowest number since the fourth quarter of 2008 and 42% below the 235 median quarterly number of deals over the previous two years. This indicates less breadth of activity.
M&A activity generally reflects how market participants view future opportunities. The availability and cost of financing as well as legal factors also pay a key role in the value and amount of M&A activity.