Latest news with #mergers
Yahoo
44 minutes ago
- Business
- Yahoo
Dealmaking in US upstream oil and gas tumbles as volatility rattles investors
By Georgina McCartney HOUSTON (Reuters) -Volatility across energy and equity markets spooked investors in the second quarter, slowing the pace of mergers and acquisitions in the U.S. upstream oil and gas sector, analytics firm Enverus said on Wednesday. The slump in dealmaking follows a series of blockbuster takeovers by oil and gas majors in recent years, which culminated in a record $192 billion worth of deals done in 2023. There were $13.5 billion worth of deals disclosed in the quarter ended June 30, marking a 21% drop quarter-over-quarter, Enverus said. The first half of 2025 saw a total of $30.5 billion change hands, which is a 60% decline compared with the same period of 2024. 'Volatility in commodity and equity markets raised a major yellow flag for M&A, slowing the pace of dealmaking,' said Andrew Dittmar, principal analyst at Enverus Intelligence Research. Oil prices fell to multi-year lows last quarter after U.S. President Donald Trump unveiled an extensive list of trade tariffs in April, stoking concerns of a recession and a drop in fuel demand, and the Organization of the Petroleum Exporting Countries announced plans to unwind deep output cuts. Prices also jumped as conflict in the Middle East inflated traders' risk premium. During the second quarter, U.S. crude futures hit a low of $57.13 a barrel on May 5, before swinging to a high of $75.14 on June 18, according to data from LSEG. Houston-based exploration and production company EOG Resources bought Encino Acquisition Partners for $5.6 billion in May, taking the lion's share of deals done in the second quarter, according to Enverus. Viper Energy followed with its purchase of Sitio Royalties for $4.1 billion in June. Those two transactions accounted for over 75% of second-quarter deal value, Enverus said. "The engine of M&A over the last few years has sputtered and stalled, given there are just a few remaining targets," Dittmar said. Companies will eventually need to explore opportunities to buy assets abroad, in Canada or further afield in areas like Argentina's Vaca Muerta, he added. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
an hour ago
- Business
- Yahoo
Dealmaking in US upstream oil and gas tumbles as volatility rattles investors
By Georgina McCartney HOUSTON (Reuters) -Volatility across energy and equity markets spooked investors in the second quarter, slowing the pace of mergers and acquisitions in the U.S. upstream oil and gas sector, analytics firm Enverus said on Wednesday. The slump in dealmaking follows a series of blockbuster takeovers by oil and gas majors in recent years, which culminated in a record $192 billion worth of deals done in 2023. There were $13.5 billion worth of deals disclosed in the quarter ended June 30, marking a 21% drop quarter-over-quarter, Enverus said. The first half of 2025 saw a total of $30.5 billion change hands, which is a 60% decline compared with the same period of 2024. 'Volatility in commodity and equity markets raised a major yellow flag for M&A, slowing the pace of dealmaking,' said Andrew Dittmar, principal analyst at Enverus Intelligence Research. Oil prices fell to multi-year lows last quarter after U.S. President Donald Trump unveiled an extensive list of trade tariffs in April, stoking concerns of a recession and a drop in fuel demand, and the Organization of the Petroleum Exporting Countries announced plans to unwind deep output cuts. Prices also jumped as conflict in the Middle East inflated traders' risk premium. During the second quarter, U.S. crude futures hit a low of $57.13 a barrel on May 5, before swinging to a high of $75.14 on June 18, according to data from LSEG. Houston-based exploration and production company EOG Resources bought Encino Acquisition Partners for $5.6 billion in May, taking the lion's share of deals done in the second quarter, according to Enverus. Viper Energy followed with its purchase of Sitio Royalties for $4.1 billion in June. Those two transactions accounted for over 75% of second-quarter deal value, Enverus said. "The engine of M&A over the last few years has sputtered and stalled, given there are just a few remaining targets," Dittmar said. Companies will eventually need to explore opportunities to buy assets abroad, in Canada or further afield in areas like Argentina's Vaca Muerta, he added. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 hours ago
- Business
- Yahoo
As merger talk heats up, deep bench will advise rail regulator
While investors and railroads are reportedly exploring what would likely touch off the final round of Class I mergers, the regulatory chief who will help decide the issue has put together a deep bench of rail, shipper, and policy executives to help evaluate prospective deals as well as manage reforms at the agency. Also, a source familiar with the board's plans said, in recent months, the agency has prioritized strengthening its data and economic expertise, including through contracts and staffing. The temporary expert hires as of May include Sharon Clark, who most recently retired as senior vice president regulatory affairs & compliance for Perdue AgriBusiness (. Clark worked at Perdue for 25 years, and has four decades of expertise in agricultural rail shipping, including with The Andersons (NASDAQ: ANDE) and Cargill . Clark also worked for trade groups in various capacities for the National Grain and Feed Association, National Grain Car Council, National Oilseed Processors Association Transportation Committee, North America Freight Car Association, and the National Freight Transportation Association. Former BNSF and CN (NYSE: CN) executive Rob Reilly also joined the STB in May. Reilly has more than 30 years in rail operations, most recently as executive vice president-president and chief operating officer at Canadian National, where he improved safety records along with multiple service and efficiency marks. First at the Atchison, Topeka and Santa Fe Co. and then BNSF, Reilly ascended to vice president of operations for the southern transcon route reporting to longtime CEO Matt Rose. Consultant Chris Bertram held senior positions in the U.S. House of Representatives, Senate, and the Executive Branch in transportation policy and finance. The FAST Act, the longest surface transportation bill in 17 years, was enacted during his term as House Transportation & Infrastructure staff director, along with reauthorization of the STB and Amtrak, and he also served as chief financial officer for the Department of Transportation. Looking ahead, the board, which issues approximately 400 decisions each year, will have complex tasks ahead. The STB's tougher merger rules established in 2001 have never been tested; the Canadian Pacific (NYSE: CP)-Kansas City Southern tie-up was granted a waiver because of the latter's extensive operations in Mexico. As it is currently constituted, the board counts four members evenly split along party lines. Expectations are that a fifth member could be recommended in 2026 but no candidates have been publicly identified, and any approval timeline is uncertain. There has been no official confirmation of reports of merger discussions between Union Pacific (NYSE: UNP) and Norfolk Southern (NYSE: NSC) , or BNSF and CSX (NASDAQ: CSX); BNSF owner Warren Buffet on Tuesday denied his company had engaged Goldman Sachs to explore opportunities. But there is already speculation that eventually two mergers, each with extensive evaluations with lengthy timelines — may move along the adjudication process on concurrent tracks. Subscribe to FreightWaves' Rail e-newsletter and get the latest insights on rail freight right in your inbox. Find more articles by Stuart Chirls aims to grow carload traffic with rail service upgrades Report: Goldman Sachs advising BNSF on potential merger Analysis: UP-NS rail merger spotlights individual legacies in a legacy business Union Pacific, Norfolk Southern in merger talks: WSJ The post As merger talk heats up, deep bench will advise rail regulator appeared first on FreightWaves. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
12 hours ago
- Business
- Bloomberg
'Sea Change' in M&A Outlook: Ariel's Rogers
Ariel Investments Founder and Co-CEO John Rogers sees a brighter outlook for mergers and acquisitions under the Trump administration. He spoke to Bloomberg's Romaine Bostick in a wide-ranging interview about his stock picks, investing amid policy uncertainty and the investment opportunity in women's sports teams at a Bloomberg New Voices event in Chicago. (Source: Bloomberg)
Reuters
17 hours ago
- Business
- Reuters
UniCredit drops bid for Banco BPM blaming Italy's government
MILAN, July 22 (Reuters) - Italy's UniCredit ( opens new tab withdrew its takeover bid for smaller rival Banco BPM ( opens new tab on Tuesday, blaming government intervention for scuppering the 15 billion-euro ($17 billion) deal. UniCredit's swoop on BPM, and a similar hostile bid by Spain's BBVA ( opens new tab for Sabadell ( opens new tab, which also faces state opposition in Madrid, have seen European governments emerge as key players in banking mergers. While European authorities have urged the bloc's players to gain scale to counter expanding U.S. rivals, some governments are reluctant to sanction deals that may lead to job losses or excessively distance lenders from local communities. "This is a missed opportunity not only for BPM stakeholders but also for Italy's businesses, communities and wider economy," UniCredit said in a note. The decision comes after Italy's markets watchdog on Tuesday, for a second time in two months, decided a 30-day suspension of the offer saying disputes over the government's conditions for a deal created excessive uncertainty. Three people familiar with the matter told Reuters that UniCredit had been ready to ditch the all-share bid ahead of the Consob watchdog's decision, as the regulator had not been expected to grant a full extra month. UniCredit said Consob's decision, though welcome, was not enough to get to a situation where all uncertainty around the bid would be removed. The sources said concerns over UniCredit's strained relations with the government had prevailed within the board. The withdrawal marks a setback for UniCredit CEO Andrea Orcel, a veteran dealmaker UniCredit hired in 2021 for his merger and acquisition skills. UniCredit could resubmit the bid in the future if Banco BPM fails to join in the consolidation frenzy gripping Italian banks. Italy's second-biggest lender had challenged in court the conditions imposed by Italy on the deal on grounds of national security, saying they would damage the enlarged company. A court ruling this month axed some of the conditions, but left intact a demand that UniCredit cease operations in Russia, apart from payments handled for Western companies. The European Commission has also criticised Rome's interference in the deal, saying that it could order the government to forgo the conditions altogether. Consob said in Tuesday's decision that the uncertainty caused by the court ruling and the Commission's scrutiny made it too hard for BPM shareholders to take a view on the offer. Prior to the suspension, the offer had been due to expire on Wednesday. With Banco BPM's market capitalisation higher than the bid's value, at 15.4 billion euros, take-up stood at just 0.5%. UniCredit unveiled its offer in November, with Orcel saying the bank could not be sidelined as the sector embarked on long-awaited consolidation. UniCredit has also expressed an interest in tying up with Germany's Commerzbank ( opens new tab, acquiring a 20% equity stake and a further 9% in derivatives, a move staunchly opposed in Berlin. ($1 = 0.8554 euro) (This story has been refiled to remove an extraneous word in paragraph 2)
