Upward surge of oil and gas equipment and services M&A values in Q3 2018, says GlobalData

Source: press release, 15 November 2018

Global equipment and servies M&A deal value and count, Q3 2017 to Q3 2018 (source: GlobalData Oil and Gas Intelligence Centre)
Global equipment and servies M&A deal value and count, Q3 2017 to Q3 2018 (source: GlobalData Oil and Gas Intelligence Centre)

A combined value of USD 9.9 billion in mergers and acquisitions (M&A) was recorded in the oil and gas equipment and services industry in Q3 2018, according to GlobalData a data and analytics company.

This was an enormous increase from the USD 4.1 billion in M&A deals announced in the previous quarter. However, the number of M&A deals decreased by 12% from 86 in Q2 2018 to 76 in Q3 2018.

The company’s latest report – “Quarterly Equipment and Services Deals Review – Q3 2018” – states that, of the total M&A deals, 59 deals, with a combined value of USD 2.6 billion, were domestic acquisitions and the remaining 17, with a combined value of USD 7.3 billion, were cross-border transactions. A quarter-on-quarter comparison shows a significant increase in domestic transaction values and an enormous increase in cross-border transaction values in Q3 2018, compared with USD 1.7 billion in domestic M&A values and USD 2.4 billion in cross-border transaction values in Q2 2018.

Praveen Karnati, Oil and Gas Analyst at GlobalData, comments: “Americas remained the frontrunner for M&A, registering 47 deals with a total value of USD 4.2 billion in Q3 2018. Cross-border activity in the region decreased by 54% from 11 in Q2 2018 to five in Q3 2018, while domestic acquisitions decreased from 49 deals in Q2 2018 to 42 in Q3 2018.”