A total of 71 M&A deals with a combined value of US$38.7 billion were registered in the midstream oil and gas industry in 4Q18, according to GlobalData, a leading data and analytics company.
Of the total M&A deals, 44 deals, with a combined value of US$28.5 billion were domestic acquisitions. The remaining 27, with a combined value of US$10.3 billion, were cross-border transactions. A quarter-on-quarter comparison shows a marginal decrease in cross-border transaction values in 4Q18, compared to US$10.4 billion in 3Q18. However, domestic transaction values decreased by 66% in 4Q18, compared to US$83.6 billion in 3Q18.
The company’s latest report: ‘Quarterly Midstream M& Deals Review – Q4 2018’ states that there were 24 midstream M&A deals (with values greater than US$100 million), together accounting for US$38.1 billion, compared with 28 deals worth US$93.3 billion in 3Q18, representing a decrease of 14% in the number of deals.
Europe, Middle East, and Africa accounted for 32% share in 4Q18, comprising 23 acquisitions, of which 12 were cross-border and the remaining 11 were domestic acquisitions. The Asia-Pacific region accounted for 12 global deals in 4Q18, of which eight were cross-border acquisitions and the remaining four were domestic acquisitions.
Praveen Karnati, Oil and Gas Analyst at GlobalData comments, “Americas remained the frontrunner for M&A registering 37 deals, with a total value of US$30 billion in 4Q18. Cross-border activity in the region increased from seven in 3Q18 to eight in 4Q18, while domestic acquisitions also increased from 28 deals in 3Q18 to 29 in 4Q18.”
EnLink Midstream’s definitive agreement to acquire the remaining 78.3% interest in EnLink Midstream Partners was the top deal registered in 4Q18. The transaction is estimated to have an enterprise value of approximately US$8.6 billion and an equity value of approximately US$5.1 billion. Another landmark deal that was recorded in 4Q18 was Antero Midstream GP’s agreement to acquire Antero Midstream. The transaction has an enterprise value of approximately US$7.2 billion. The total equity value of the transaction is approximately US$5.8 billion.
Information is based on GlobalData’s report: Quarterly Midstream M&A Deals Review – Q4 2018.
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