M&A by energy firms at highest levels on record

DEALS between energy and power firms have helped to boost the volume of mergers and acquisitions to $93.7bn (£57.9bn), the highest level since records began.

Activity, boosted by several large deals, lifted deal volume by 40 per cent compared to the first few months of last year.

The figure was helped by three of the year’s biggest energy deals so far.

Anglo-Australian mining giant BHP Billiton’s £4.75bn move for US energy firm Chesapeake, announced yesterday, is one of the biggest cross-border deals to be unveiled this year to date.

Cross-border merger activity between energy firms has hit $58.1bn in total so far, accounting for 63 per cent of worldwide merger activity in the sector.

Deals targeting US energy firms have hit a record $47.2bn, or 50 per cent of worldwide activity in the sector.

US gas and electricity provider Duke Energy’s $25.7bn merger with Progress Energy, announced last month, is the biggest deal so far this year.

London-based oil giant BP’s purchase of a $9bn stake in Indian firm Reliance Industries, announced earlier this week, is the biggest cross-border deal so far.