Analyst sees new M&A 'super-cycle'

Outlook: 2013 could be banner year for oil and gas M&A

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By Staff & news wires

 11 January 2013 21:49 GMT

The climate is right for a repeat of the oil company takeover bonanza that began when UK supermajor BP pounced on US-based Amoco in 1998, according to a research note by analysts at Bernstein.

The Amoco takeover was followed by a number of giant merger deals at the turn of the century, including Exxon's combination with Mobil, Chevron's takeover of Texaco and Total's absorption of Fina and Elf.

Analyst Neil Beveridge and his team argue that the wave was driven by stable but declining oil prices, underperformance against other sectors, the potential for cost cuts and the competitive threat from national oil companies, according to a Reuters report.

It ended as rising commodity prices delivered improved returns across the industry from 2002 to 2008.

Last year, Beveridge notes, M&A transaction value topped $250…

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