HORIZONS | BDO'S GLOBAL VIEWOF MID-MARKET DEAL ACTIVITY 63
NATURAL RESOURCES
ENERGY TRANSITION SET TO DRIVE FUTURE NATURAL RESOURCES M&A
SHERIF ANDRAWES HEAD OF GLOBAL NATURAL RESOURCES
STUART MOORE ASSOCIATE DIRECTOR
sherif.andrawes@bdo.com.au
stuart.moore@bdo.com.au
The level of mid-market M&A activity in the Natural Resources sector in the first quarter of 2022 fell to its lowest level since the second quarter of 2020, which saw the first phase of the COVID-19 pandemic. This current quarter may be an aberration because the deal count in the previous four quarters (in the 2021 calendar year) was at a consistently higher level and represented the best calendar year overall since 2018. It is also possible that, because of continuing low interest rates, the ability of entities in the Natural Resources space to grow through raising funds from IPOs and additional capital raisings has decreased the reliance on M&A activity. The ongoing Russia/Ukraine situation continues to play out and has already resulted in an unanticipated loss of confidence in future global stability, leading to a more cautious approach to acquisitions.
NUMBER OF GLOBAL ENERGY, MINING & UTILITIES M&A DEALS BY QUARTER
300
286
266
251 250
237
225
224 223
212 216
212
195
189
200
167
155 147
148
100
0
2018 Q1
2018 Q2
2018 Q3
2018 Q4
2019 Q1
2019 Q2
2019 Q3
2019 Q4
2020 Q1
2020 Q2
2020 Q3
2020 Q4
2021 Q1
2021 Q2
2021 Q3
2021 Q4
2022 Q1
NUMBER OF GLOBAL ENERGY, MINING & UTILITIES M&A DEALS BY CALENDAR YEAR 1079
1000 1100
990
929
928
909
899
0 100 200 300 400 500 600 700 800 900
834
783
2014
2015
2016
2017
2018
2019
2020
2021
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