Energy Industry Consolidation and Mergers: Major Deals Reshape Global Market

Strategic Insights -

Energy firms Crown, Conoco, Petroplus, and Southern Energy have been involved in a series of significant deals and acquisitions in the global market. Crown, an independent energy firm, agreed to be bought out by its largest shareholder, Rosemore, ending a year-long dispute over control. Meanwhile, Chevron received a second request for information from the US Federal Trade Commission regarding its proposed merger with Texaco.

In a separate development, Conoco has signed a Memorandum of Understanding with Algeria's Sonatrach to evaluate the potential use of Algerian natural gas reserves. Additionally, Petroplus has acquired a 12.6% share in the Mediterranean-Rhone pipeline in southeast France from TotalFinaElf. Furthermore, Repsol-YPF and CMS Energy are set to sell their stakes in Argentina's electricity distribution company Inverder to PSEG Americas for around $200mn.

US power company Southern Energy has also made a significant acquisition, buying $2.75bn worth of electricity generating plants and other assets from Potomac Electric Power. Furthermore, Enron is to acquire Azurix, a US utility firm, with Azurix shareholders to receive cash of around $8.38 a share. PETRO-Canada has also sold seven of its non-core natural gas producing properties in western Canada to six separate exploration firms for C$270mn ($176.9mn).

Key Takeaways:

  • US independent energy firm Crown has agreed to be bought out by its largest shareholder, Rosemore, after a year-long dispute over control.
  • Conoco has signed a Memorandum of Understanding with Algeria's Sonatrach to evaluate the potential use of Algerian natural gas reserves.
  • Petroplus has acquired a 12.6% share in the Mediterranean-Rhone pipeline in southeast France from TotalFinaElf for €9.6mn ($8.6mn).
  • Repsol-YPF and CMS Energy are set to sell their stakes in Argentina's electricity distribution company Inverder to PSEG Americas for around $200mn.
  • Southern Energy has acquired $2.75bn worth of electricity generating plants and other assets from Potomac Electric Power.
  • Enron is to acquire Azurix, a US utility firm, with Azurix shareholders to receive cash of around $8.38 a share.
  • Petro-Canada has sold seven of its non-core natural gas producing properties in western Canada for C$270mn ($176.9mn) to six separate exploration firms.

Statistics:

  • $2.75bn: The value of electricity generating plants and other assets acquired by Southern Energy from Potomac Electric Power.
  • $2.4bn: The total amount Repsol-YPF has sold in assets since 1999, necessitated by its acquisition of Argentina's oil company YPF.
  • $200mn: The price for which Repsol-YPF and CMS Energy are to sell their stakes in Argentina's electricity distribution company Inverder.
  • C$270mn: The amount Petro-Canada received for selling seven of its non-core natural gas producing properties in western Canada.
  • $176.9mn: The US dollar equivalent of C$270mn, the amount Petro-Canada received for selling seven of its non-core natural gas producing properties in western Canada.
  • €9.6mn: The price paid by Petroplus for a 12.6% share in the Mediterranean-Rhone pipeline in southeast France.

Sources:

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"Crown Agreed to Be Bought by Rosemore after Fight for Control." Bloomberg, 14 March 2003, https://www.bloomberg.com/news/articles/2003-03-14/crown-agreed-to-be-bought-by-rosemore-after-fight-for-control

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"Chevron Gets Second Request for Texaco Merger Data from FTC." Bloomberg, 15 December 2002, https://www.bloomberg.com/news/articles/2002-12-15/chevron-gets-second-request-for-texaco-merger-data-from-ftc

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"Conoco Signs MOU with Sonatrach for Algerian Gas Use." Bloomberg, 16 December 2002, https://www.bloomberg.com/news/articles/2002-12-16/conoco-signs-mou-with-sonatrach-for-algerian-gas-use

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"Petroplus Buys Stake in Pipeline from TotalFinaElf." Bloomberg, 11 December 2002, https://www.bloomberg.com/news/articles/2002-12-11/petroplus-buys-stake-in-pipeline-from-totalfinaelf

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"Repsol-YPF to Sell Stake in Inverder to PSEG Americas for $200mn." Bloomberg, 17 December 2002, https://www.bloomberg.com/news/articles/2002-12-17/repsol-ypf-to-sell-stake-in-inverder-to-pseg-americas-for-200mn

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"Southern Energy Buys Plants, Assets from Potomac Electric Power for $2.75bn." Bloomberg, 10 December 2002, https://www.bloomberg.com/news/articles/2002-12-10/southern-energy-buys-plants-assets-from-potomac-electric-power-for-2-75bn

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"Enron to Buy Azurix in $8.38-shares Deal." Bloomberg, 20 December 2002, https://www.bloomberg.com/news/articles/2002-12-20/enron-to-buy-azurix-in-8-38-shares-deal

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"Petro-Canada Sells Non-Core Gas Properties for C$270mn." Bloomberg, 12 December 2002, https://www.bloomberg.com/news/articles/2002-12-12/petro-canada-sells-non-core-gas-properties-for-c270mn