M&A Values Totaled $91.9 Billion in the Midstream Sector in Q3 2018

A combined value of US$91.9bn in mergers and acquisitions (M&A) was announced in Q3 2018. This was an increase of 21% from the US$75.9bn in M&A deals announced in the previous quarter. The number of M&A deals decreased by 20% from 102 in Q2 2018 to 82 in Q3 2018, according to GlobalData, a leading data and analytics company.

The company’s latest report: ‘Quarterly Midstream Capital Raising Review – Q3 2018’ states that, of the total M&A deals, 58 deals, with a combined value of US$83.6bn, were domestic acquisitions and the remaining 24, with a combined value of US$8.2bn, were cross-border transactions. A quarter-on-quarter comparison shows a 12% decrease in cross-border transaction values in Q3 2018, compared to US$9.3bn in Q2 2018. However, domestic transaction values increased by 26% in Q3 2018 compared to US$66.5bn in Q2 2018.

Energy Transfer Equity’s (ETE) agreement to acquire the remaining stake in Energy Transfer Partners (ETP) for a purchase consideration of approximately $60.4bn was the top deal registered in Q3 2018. Another landmark deal that was recorded in Q3 2018 was Enbridge’s agreement to acquire all of the outstanding public Class A common units of Enbridge Energy Partners, all of the public outstanding shares of Enbridge Energy Management, and all of the issued and outstanding shares of Enbridge Income Fund Holdings, for a purchase consideration of US$7.1bn.

Americas remained the frontrunner for M&A registering 33 deals, with a total value of US$82.1bn in Q3 2018. Cross-border activity in the region decreased from nine in Q2 2018 to six in Q3 2018, while domestic acquisitions decreased by 43% from 47 deals in Q2 2018 to 27 in Q3 2018.

Europe, Middle East, and Africa accounted for 37% share in Q3 2018, comprising 31 acquisitions, of which 10 were cross-border and the remaining 21 were domestic acquisitions. The Asia-Pacific region accounted for 20 global deals, or 24% in Q3 2018, of which 10 were cross-border acquisitions and the remaining 10 were domestic acquisitions.

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