Time for transition: Energy M&A 2022. Dealmaking in the age of COVID, digital disruption and energy transition

International

2021 was a stellar year for European energy M&A – the highest on record since at least 2006 – with power, renewables and electricity networks the number-one deal generator. And this strong activity is set to continue. That is one of the findings of Time for transition: Energy M&A 2022, our new report published in co-operation with Mergermarket.

A greater shareholder activism, cross-border deals and carve-outs are seen as the top trends shaping European energy M&A in the aftermath of the pandemic.

Three-quarters of energy industry executives surveyed say they’re considering an acquisition and/or a pestment in the coming year, with pestments a particularly high priority, as strategic players look to refocus and streamline their business areas to focus on high growth units.

The future of energy may be green, but M&A embraces a variety of business models and there is plenty of deal activity in the fossil fuels space.

The green transition will drive an acceleration of investment in renewables, energy efficiency and clean energy solutions, as more and more stakeholders pivot away from carbon-intensive assets. But for nimble investors, with shorter return horizons, there are lots of valuable investment opportunities in traditional fossil fuels in the medium term.

See here or click on "Download publication" to access and download our report.

Should you require more information or specific advice, please contact the authors identified in the report, or your usual CMS contact.