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FINANCIAL VS TRADE BUYERS – DEAL VOLUME
0
5
10
15
20Financial Buyers
Trade BuyersUSDbn
NATURAL RESOURCES & UTILITIES M&A LANDSCAPE
OIL & GAS – M&A VALUES
0
100
200
300
400
500USDbn
GLOBAL M&A ACTIVITY
CONSEQUENCES OF NRU SECTOR LIQUIDITY SQUEEZE
TOP FIVEBIGGESTBANKRUPTCIES
$2.8BILLION
$3.9BILLION$2.9
BILLION
$4.3BILLION
$5.3BILLION
PACIFICEXPLORATION &PRODUCTION
SAMSON RESOURCES
ULTRAPETROLEUM
SABINEOIL & GAS
ENERGYXXI
CHINA INVESTMENTLOWER THAN EXPECTED NRU M&A ACTIVITY 2014/15
Sellers’ prices based on internal expectations
Lack of buyer/seller value consensus
Buyers waiting for market bottomLOW M&A ACTIVITY
EUROPE V REST OF WORLD – 1H2015
40%RoW
60%Europe
TOP 2 REASONS FOR DIVESTMENT56% were driven by theneed to refocus on corebusiness activities
15% were motivated bymarket changes
TREASURY INTEGRATION OPTIONS
QUALITY OF OUTCOME56% 15%
Lift and shiftSimpleintegration
Simple integrationwith improvement
RISE OF DOMESTIC DEALVOLUMES IN MENA
MENA M&A TRENDS 2014-16
21Q1 2015
30
Q1 20160
3000
6000
9000
12000
15000
Q1 2016Q4 2015Q3 2015Q2 2015Q1 2015Q4 2014Q3 2014Q2 2014Q1 2014100
150
200
1214,529 10,880 6,287 12,850 5,997 6,498 10,572 10,238 6,998
117132
152 148
183 185
161 163
Deal Value (USDmn)Deal volume
ASIA
EUROPE
MENA
1Other category consists of deals completed by Asia, Russia and South/Central America
M&A REGIONAL VIEWPOINT
OIL & GAS UPSTREAM DEALS1H2016
Canada29 DEALS (21%)
Other1
18 DEALS (26%)
DRIVERS FOR POST– LIQUIDITY & CASH MANAGEMENT
Treasury policy compliance
CASHVISIBILITY
US
US72 DEALS (45%) Need to pay down
M&A debt funding
Operational risk Fraud/control risk
Europe13 DEALS (7%)
Please note that the information contained in this document is provided for your information only and subject to change without notice. The laws and regulations referred to in this document are for reference only and may be amended and replaced from time to time. We have no obligations and responsibilities to notify recipients of such changes. The information as obtained from various market sources shall not be regarded as an advice nor representation of the view of HSBC. Readers should seek independent professional advice where necessary before taking any action based on the information contained in this document. HSBC Group is not providing any financial or investment advice.