Sales and mergers among companies trading North Sea assets are expected to remain frothy this year as dealmakers confirm lack of funding is no longer acting as a “significant” barrier, a survey has found.
Dealmakers expect transactions, such as the acquisition of BP assets by Abu Dhabi-based Taqa , to be healthy in the next 12 months, according to a report by KPMG.
Close to three-quarters of those surveyed said they expect healthy merger and acquisition (M&A) activity in the coming year, while the vast majority – 94% – no longer saw a lack of finance as a major issue. The survey, conducted at KPMG’s recent M&A forum in Aberdeen, found the energy sector was expected to continue its dominance among buyers and sellers.
However, less than a tenth thought the renewables industry would experience deals.
KPMG added that a lack of appetite for M&A activity in the tourism sector – in a year that will see the Ryder Cup and the Commonwealth Games take place in Scotland – was “particularly surprising”.
Another report today reveals that Scotland is enjoying its most sustained period of economic growth in three years.
The EY Scottish Item Club report says the Scottish economy is set to outpace growth across the UK, expected to be up 1.9% this year, “well above” the group’s forecast of 1.4% for the UK economy.
The Item Club said it expected further growth of 1.7% in 2014 and 2.0% in 2015.
But the report warns that continued growth must be driven by exports and investment to remain sustainable.