M&As in the global oil and gas industry, registered a substantial decrease of 61% in deal value from US$101.6 billion in Q4 2012 to US$39.3 billion in Q1 2013. Such decrease was due to some of the high-value transactions in Q4 2012 by industry majors such as Rosneft's acquisition of 50% stake in TNK-BP from AAR Consortium for US$27.7 billion and the remaining 50% stake from BP for US$26.4 billion; Freeport-McMoRan's agreement to acquire Plains Exploration & Production for US$6.9 billion and BP's acquisition of 5.7% stake in Rosneft from Rosneftegaz for US$4.8 billion. The number of deals also registered a decrease of 46% with 118 in Q1 2013, as compared to 217 in Q4 2012.
M&As in the upstream energy sector accounted for 39% of the total deals and 51% of deal value, with 46 deals worth US$20.2 billion in Q1 2013. Of the 46 deals in upstream energy sector, 33 deals were registered in the conventional segment and 13 deals were registered in the unconventional segment. M&As in the equipment and services sector registered a considerable decrease in deal value from US$7.2 billion in Q4 2012 to US$4.4 billion in Q1 2013. The number of deals also recorded a decrease of 35% to reach 55 in Q1 2013 from 85 in Q4 2012.
11 M&A deals worth more than US$1 billion were registered in Q1 2013, down 22% from 14 deals in Q4 2012. Deal values of more than US$1 billion each accounted for 83% of the total deal value in Q1 2013, while similar deals accounted for 84% in Q4 2012.
M&A transactions remained buoyant in the North American market with 48 deals worth US$20.5 billion in Q1 2013, accounting for 41% of the deals and 52% of total deal value in the oil and gas industry in the quarter, followed by Europe with 31 deals worth US$13.3 billion, constituting 26% of the total deals and 34% of total deal value.
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