Mergers and acquisitions in the oil and gas sector

Anastacia C. Arko, Joshua Yindenaba Abor (Editor), Ali Sheikhbahaei, Runar Brännlund (Editor)

Research output: Chapter in Book/Report/Conference proceedingChapter (Book)Otherpeer-review


This chapter examines mergers and acquisitions (M&As) in the oil and gas industry in emerging and developing economies. The chapter shows how the aggressive tactical or cyclical M&A strategies of the past have made way to restrained, strategic, and environment-focused M&A deals in recent times. The study shows that the global merger and acquisition (M&A) activity in 2021 far surpassed pre-pandemic levels, nearing the peaks of 2015. In the peak of the COVID-19 pandemic when oil prices fell to their lowest levels in the past decade, M&A deal counts and deal values also fell to their lowest levels. Since then, M&A activities have had a rebound on the back of an optimistic outlook for the industry as economies recover and life returns to normalcy. Despite some key M&A challenges identified in the sector as well as the fundamental changes made to M&A strategy of oil and gas deal-making, it is important for M&A O&G companies to well prioritise capital discipline, strengthen balance sheet and shareholder distributions over price-led growth and spending, and design a strong post-merger strategy to ensure a smooth consolidation of the two entities, post M&A.
Original languageEnglish
Title of host publicationThe Economics of the Oil and Gas Industry
Subtitle of host publicationEmerging Markets and Developing Economies
EditorsJoshua Yindenaba Abor, Amin Karimu, Runar Brännlund
Place of PublicationAbingdon UK
Number of pages17
ISBN (Electronic)9781003315056
ISBN (Print)9781032324425, 9781032324449
Publication statusPublished - 2023

Publication series

NameRoutledge Studies in the Economics of Business and Industry

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