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Developments and Trends of Mergers and Acquisitions in the Energy Industry

Author

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  • Karolis Andriuškevičius

    (Lithuanian Energy Institute, Breslaujos st. 3, LT-44403 Kaunas, Lithuania)

  • Dalia Štreimikienė

    (Lithuanian Energy Institute, Breslaujos st. 3, LT-44403 Kaunas, Lithuania)

Abstract

Developments, trends, business climate, conditions, factors influencing the efficiency and results of mergers and acquisitions (M&A) in the energy sector are explored in this research. PESTLE (political, economic, social, technological, legal, environmental) analysis was performed in order to determine the driving forces of M&As in the energy industry. Considering the motivation and main questions of the study, a sample of global M&A deals that have occurred during the period 1995–2020 has been analyzed. DataStream 5.1 database by Thomson Reuters was employed to identify the sample of global energy companies that took over another company in the period 1995–2020. According to the research, while the role and presence of M&As in the energy industry are increasing, the purpose of the M&A deals has changed remarkably. During 1995–2010, most M&A events were conducted in order to explore synergies and benefit from cost reduction. Since the last decade, firms are pursuing M&As in the search of growth opportunities, ensuring supply and reflecting demand for green development of ecological environment and ongoing changes in the nature of energy.

Suggested Citation

  • Karolis Andriuškevičius & Dalia Štreimikienė, 2021. "Developments and Trends of Mergers and Acquisitions in the Energy Industry," Energies, MDPI, vol. 14(8), pages 1-14, April.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:8:p:2158-:d:535056
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    1. Hawkes, Adam & Muûls, Mirabelle & Hamilton, James W., 2023. "Big oil and the energy transition: Evidence from M&A," Energy Policy, Elsevier, vol. 183(C).
    2. Joanna Toborek-Mazur & Karol Partacz & Marcin Surówka, 2022. "Energy Security as a Premise for Mergers and Acquisitions on the Example of the Multi-Energy Concern PKN Orlen in the Face of the Challenges of the 2020s," Energies, MDPI, vol. 15(14), pages 1-28, July.
    3. Jerzy Niemczyk & Aleksandra Sus & Kamil Borowski & Bartosz Jasiński & Katarzyna Jasińska, 2022. "The Dominant Motives of Mergers and Acquisitions in the Energy Sector in Western Europe from the Perspective of Green Economy," Energies, MDPI, vol. 15(3), pages 1-17, January.
    4. RAHMAN, Md. Atiqur & USHER, Lauren, 2022. "A Critical Review Of Neoclassical And Behavioural Theories Of Merger Waves," Studii Financiare (Financial Studies), Centre of Financial and Monetary Research "Victor Slavescu", vol. 26(1), pages 6-22, March.
    5. Natalia Wasilewska & Mirosław Wasilewski & Serhiy Zabolotnyy & Dmytro Osiichuk, 2022. "The Impact of M&As on the Competitive Positioning of European Energy Firms and Market Power Concentration on EU National Energy Markets," Energies, MDPI, vol. 15(23), pages 1-19, November.

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