HORIZONS | BDO'S GLOBAL VIEWOF MIDMARKET DEAL ACTIVITY 61
NATURAL RESOURCES
M&A RECOVERY SET TO CONTINUEWITH RENEWABLES DEALS TOTHE FORE
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 appears to have confirmed its recovery to pre-COVID-19 levels, although there has been a minor downward trend over the past three quarters. There is ready availability of funding (both debt and equity) as a result of continuing low interest rates. This is fuelling a continuing move of many natural resources companies to raise funds through initial public offerings and follow-on funding, with Australia and the UK being particularly prominent in this trend. To some extent this has lessened the imperative for M&A activity to keep the sector moving. A key observation within the overall data is the increasing number of deals taking place in the renewables sector. Awareness of the environment, global warming narratives and particularly the impact of ESG as a core consideration of resources companies has put an emphasis on alternative energy sources and companies involved in that sub-sector. This is being reflected in deals in many regions of the world, not just the traditional western economies.
NUMBER OF GLOBAL ENERGY, MINING & UTILITIES M&A DEALS BY QUARTER
300
282
266
250
220
212
203 193
196
189
200
167
155 146
100
0
Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020Q2 2020Q3 2020Q4 2020 Q1 2021 Q2 2021 Q3 2021
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