Value creation through M&A: the case of the O&G industry

The results of the analysis of event studies for a sample of largest by value transactions in the O&G industry during 2013-2014 years confirmed that in general M&A in the O&G industry creates additional value. Then the effect of deal-specific (financing of the deal acquisition premium) company-specific (size of the deal country) and industry – related factors (industry segment oil prices and strategic rationale of the O&G deal) on value creation was assessed. Number of important conclusions that can be used by O&G companies in their decision making process to increase their chances to create additional value through M&A have been made.