The M&A activity related to Energy plants and investments has strongly increased in the last years by undergoing significant transformation in the energy industry driven by technological advancements, policy changes and growing climate awareness.
The M&A activity in the Energy Sector in all jurisdictions is mainly driven by investments in sustainable and clean energy projects.
Moreover, institutional investors, as well as private equity firms, are increasingly focused on acquiring and funding projects with positive environmental and social impacts. The most noteworthy developments in the sector are as follows:
- Majority of executives look to maintain or increase energy investment in in 2024: 82% of senior executives from both energy-minded corporations and private equity firms anticipate a rise in merger and acquisition (M&A) prospects among energy companies in Europe over the next 12 months. 64% intend to increase investments, while 33% aim to maintain their current spending, only 3% propose divesting from the sector. 1
- Solar and storage at the forefront: Solar positioned as the most attractive subsector for investment by over a third of executives (34%). 2
- South-West Europe the hotspot for M&A activity: 41% of respondents in recent survey rank South West Europe as the leading region in Europe for energy investments. 3
- Supply-chain disruptions present the most significant obstacle: Supply-chain risk is regarded by a third of executives to be the greatest challenge for future investments in European energy assets.
Indeed, the oil and gas industry is still highly dynamic although subject to global events, including geopolitical tensions, renewables technological advancements, and shifts in energy demand. Consolidation, diversification of the portfolio, mergers and acquisitions remain crucial for oil and gas major players aiming at achieving economies of scale or at looking to acquire innovative technologies.
