find the latest legal job
Senior Associate - Litigation & Dispute Resolution
Category: Litigation and Dispute Resolution | Location: Melbourne CBD & Inner Suburbs Melbourne VIC
· Come work for a firm ranked in Lawyers Weekly Top 25 Attraction Firms
View details
Associate - Workplace Relations & Safety
Category: Industrial Relations and Employment Law | Location: Brisbane CBD & Inner Suburbs Brisbane QLD
· Employer of choice · Strong team culture
View details
Freelance Lawyers
Category: Banking and Finance Law | Location: All Perth WA
· Freelance opportunities through Vario from Pinsent Masons
View details
Freelance Lawyers
Category: Other | Location: All Adelaide SA
· • Qualified lawyer with a strong academic background
View details
Freelance Lawyers
Category: Other | Location: All Melbourne VIC
· • Qualified lawyer with a strong academic background
View details
Energy remains most active M&A sector

Energy remains most active M&A sector


The resources industry may be in decline but the energy, mining and utilities sector has outstripped all others for M&A activity in Australia over the past financial year.

A new report from Mergermarket has identified the sectors that recorded the most and highest-value M&A deals in Australia for FY2015-16.

Energy, mining and utilities proved to be the most active area, recording total deals valued at $26.9 billion and taking up a 31.6 per cent share of the total deal value in the period.

“Nearly two thirds of the overall investment value came from overseas, with Canada and China in particular showing their appetite for natural resources in Australia, recording AU$10.3 billion and AU$5.2 billion worth of investments in the sector respectively,” the report found.

However, the sector took up a smaller share of deal value than in FY2014-15, when it accounted for 37.8 per cent of the total.

Transport was the next most active sector, accounting for 18.3 per cent of deal value, which represents a significant jump from 10.1 per cent in FY2014-15.

Financial services also saw a dramatic increase in its deal share over the past year, increasing to 17.2 per cent of the total from 3.6 per cent.

Deals in this sector for the past year were valued at $14.7 billion, including the $8.2 billion acquisition of dealer finance business Esanda Finance Corporation by Macquarie Group.

Real estate transactions, on the other hand, saw a slump over the same period, with a total value of just $1.3 billion compared with $13 billion in FY2014-15, a decrease of 89.9 per cent.

Overall, the Australian M&A market has been “tepid” over the past year, according to the report, with the federal election putting a dampener on activity.

A total of 436 deals amounting to $85.3 billion were announced, representing an 8.8 per cent decline compared with FY2014-15.

“While the whole of Asia-Pacific (excl. Japan) was set on a growing trajectory, this slowdown trend resulted in Australia’s lowest market share of overall Asia-Pacific M&A activity on Mergermarket records, accounting for 8.06 per cent of the total deal value in the region (excl. Japan),” the report said.


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 remains most active M&A sector
lawyersweekly logo
Promoted content
Recommended by Spike Native Network
more from lawyers weekly
Oct 20 2017
Podcast: One of law’s most infamous alumni – in conversation with Julian Morrow
In this episode of The Lawyers Weekly Show, Melissa Coade is joined by The Chaser’s Julian Morrow....
Oct 20 2017
High Court overturns ‘excessive’ anti-protest legislation
Bob Brown’s recent victory in the High Court over the Tasmanian government was a win for fundament...
Oct 20 2017
Changes to Australian citizenship laws blocked
Attempts to beef up the requirements to obtain Australian citizenship were thwarted this week, after...
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 & ...