find the latest legal job
Corporate Counsel and Company Secretary
Category: Generalists - In House | Location: Newcastle, Maitland & Hunter NSW
· Highly-respected, innovative and entrepreneurial Not-for-Profit · Competency based Board
View details
Chief Counsel and Company Secretary
Category: Generalists - In House | Location: Newcastle, Maitland & Hunter NSW
· Dynamic, high growth organisation · ASX listed market leader
View details
In-house Projects Lawyer | Renewables / Solar | 2-5 Years PQE
Category: Generalists - In House | Location: All Australia
· Help design the future · NASDAQ Listed
View details
Property lawyer - Melbourne
Category: Property Law | Location: Melbourne CBD & Inner Suburbs Melbourne VIC
· Impressive client list, national firm · Well-led and high-performing team
View details
Senior family lawyer - Melbourne
Category: Family Law | Location: Melbourne CBD & Inner Suburbs Melbourne VIC
· Outstanding national firm · High-calibre family law team
View details
Energy sector drives growth in M&A in Asia Pacific

Energy sector drives growth in M&A in Asia Pacific


M&A has remained strong in the energy sector in the Asia Pacific region throughout 2015, with interest in renewable energy assets increasing, according to a new report.

A total of 200 M&A deals were completed in the energy sector in 2015, down from 222 in 2014, according to a joint Eversheds and Mergermarket report, A towering presence: Asia-Pacific energy M&A.

“Energy has been one of the main sectors driving M&A in Asia Pacific recently, and the year ahead could be a very interesting one for energy deals given oil price volatility,” said Eversheds partner Charles Butcher.

The high number of transactions has been driven by “ongoing uncertainty toward global market conditions”, according to the report.

“Energy corporates have been rationalising their operations in the region. With markets unsure how long depressed prices will continue, producers are seeking to cut costs through restructuring and, in some cases, widespread divestment programs," the report said.

China dominated the energy sector in 2015, engaging in 43 per cent of deals (valued at S$56 billion), according to the report.

Australia and New Zealand ranked second, carrying out 32 deals worth US$20.5 billion, which accounted for 17 per cent of the deal volume in the region.

South-east Asia trailed behind with 33 deals with a value of US$5.5 billion.

“Australia occupies an interesting place in Asia,” said Mr Butcher.

Australia has a high level of development, including advanced regulatory regimes and mature financial systems, he said. This makes it attractive to a wider pool of investors, continued Mr Butcher.

“That being said, Australia is not a cheap country to do business in,” he added. “While Australia has an educated and skilled workforce, high labour costs and a sometimes tricky industrial relations environment can be negative factors.”

Eversheds partner Jae Lemin said Australia has also shown strong government support for renewable energy compared with parts of emerging Asia.

“This has translated into significant investment in Australia, particularly into the wind and solar sectors,” he said.

Renewables were an area of interest for investors in 2015, with ‘alternative energy’ representing 44 per cent by deal volume in the Asia Pacific region, compared with 27 per cent for oil and gas exploration and production.

Mr Butcher said: “The question is, will renewables live up to the hype of their effectiveness and ability to make returns to investors?”

“There are tailwinds for the renewables sector generally,” added Mr Lemin.

“Storage solutions will begin to address intermittency risk, and large countries such as China and India are reaching grid parity and there is a general, although not blanket, opposition among international banks towards financing new-build, coal-fired power stations," he continued.

“To what extent will those tailwinds translate into significant deal flow in the renewables sector in Asia remains to be seen, although I think a lot of participants are asking this question.”

Like this story? Read more:

QLS condemns actions of disgraced lawyer as ‘stain on the profession’

NSW proposes big justice reforms to target risk of reoffending

The legal budget breakdown 2017

Energy sector drives growth in M&A in Asia Pacific
lawyersweekly logo
Promoted content
Recommended by Spike Native Network
more from lawyers weekly
Aug 23 2017
NT Law Society sounds alarm on mandatory sentencing
The Law Society Northern Territory has issued a warning over mandatory sentencing, saying it hasn’...
Aug 22 2017
Professionals unite in support of marriage equality
The presidents of representative bodies for solicitors, barristers and doctors in NSW have come toge...
Aug 21 2017
Is your firm on the right track for gig economy gains?
Promoted by Crowd & Co. The way we do business, where we work, how we engage with workers, ev...
Allens managing partner Richard Spurio, image courtesy Allens' website
Jun 21 2017
Promo season at Allens
A group of lawyers at Allens have received promotions across its PNG and Australian offices. ...
May 11 2017
Partner exits for in-house role
A Victorian lawyer has left the partnership of a national firm to start a new gig with state governm...
Esteban Gomez
May 11 2017
National firm recruits ‘major asset’
A national law firm has announced it has appointed a new corporate partner who brings over 15 years'...
Nicole Rich
May 16 2017
Access to justice for young transgender Australians
Reform is looming for the process that young transgender Australians and their families must current...
Geoff Roberson
May 11 2017
The lighter side of the law: when law and comedy collide
On the face of it, there doesn’t seem to be much that is amusing about the law, writes Geoff Rober...
May 10 2017
Advocate’s immunity – without fear or without favour but not both
On 29 March 2017, the High Court handed down its decision in David Kendirjian v Eugene Lepore & ...