Energy & Power M&A - The view from Merrill Corp

I recently co-published a report to demonstrate the value of M&A and Private Equity across Africa and the Middle East which is highly relevant to the energy market. I just wanted to say a big thanks to Bill Marko from Jefferies, Abby Roberts of Merrill Corp, Andrea Decore of Suncor Energy and Denmon Sigler, Partner at Baker & McKenzie. The panel gave a talk on the key issues, trends and due diligence best practices in Energy and Power M&A. The webinar series from Merrill Corp touched on a few interactive points which I have listed in bullets (below):

  • We discussed customer needs and the fact that customers want lower carbon solutions to their energy supply concerns
  • We discussed contemporary American perspectives on alternative energy investment vs European (i.e. Nordic) perspectives
  • One lively contribution was the slide on how dealmakers are reacting to the lackluster energy market (secondary buyouts, all equity structures etc)
  • A panellist mentioned the fact that there will be long-term demand for energy whether it's from Oil and Gas or alternatives
  • We discussed LNG, which was viewed as the perfect "bridge fuel" by several on the panel
  • Denmon mentioned the perils of battery storage and the inability to dispose of batteries and the inefficiency of rare earth minerals that go into smartphones, a lot of them from China (95%) and Africa, South America
  • Andrea answered a question on the role of government in energy innovation. Andrea mentioned fair and consistent energy market regulation across jurisdictions. The banning of fracking or compartmentalization of renewable energy projects

I learned a lot from this webinar, and am still learning quite a bit from the webinar series. One of the other attendees asked an intriguing question (below):

"I'm curious if you, the panel, are seeing more joint ventures and mergers for renewable energy companies in order to energize the capacity market and overcome the intermittency issue inherent in renewable energy".

I'm going to try and follow up on that.

All-in-all, this series from Merrill Corp is a great attempt to envisage the landscape for the US energy market in particular but also the European and Middle-East markets. I definitely recommend watching the webinar if you get the chance.