The Role of Cross-Border Mergers and Acquisitions in Energy Security

Abstract

In recent years, national and global energy security has become a key political and economic issue, and the players in this global energy game are also diversified. Corresponding to the diversified sectors and multiple components, energy security can be studied from a number of perspectives. We will focus on the behavior of energy companies in this study. Specifically, we are to examine the role the cross-border mergers and acquisitions (M&As) of oil & gas companies can play in energy security. The upcoming analysis comprisesof four parts. The Background section reviews the global energy security from the angle of national consumption and production, followed by a brief analysis of global oil and gas industry and market. The status quo of major oil and gas companies will be reviewed and global M&As’ landscape is illustrated in the section as well. The second part is our primary focus, exploring the cross-border M&As in energy industry, in particular, oil and gas companies. This literature review will examine how those energy transactions can influence the competition, economy and national welfare, and other related aspects. Then we concentrate on the features and drives of energy M&As based on transaction records available, and attention is paid to the valuation of post-merger performance of acquirers. The third section aims at providing practical knowledge for energy M&As by integrating some legal and financial knowledge in the business world.