Logistics no barrier to deal making

The current M&A market environment is challenging, but deals can still get done

Price crashes in the oil market often lead to M&A activity. Indeed, four of the five majors in the form we know them today were forged in the aftermath of the late 90s slump—Exxon and Mobil and Chevron and Texaco joined forces in the US, while Total, Fina and Elf did the same in Europe. BP crossed the Atlantic to hoover up first Arco, then Amoco. And the last large-scale acquisition by a major—Shell’s swoop for UK-headquartered BG— also took place post the 2014 fall in prices. It stands to reason that the current environment should also offer opportunities for deal making. But will the unprecedented physical constraints imposed as a result of the global Covid-19 pandemic get in the way o