Merger and acquisitions : the case of ExxonMobil and Anadarko
Autor(a) principal: | |
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Data de Publicação: | 2016 |
Tipo de documento: | Dissertação |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10400.14/21037 |
Resumo: | The rationale under Merger and Acquisitions (M&A) has a huge spectrum, but it is always assumed to be a way of increasing shareholders value. The recent downturn in the oil and gas (O&G) market has been creating some speculations where M&A arises as a way to join companies that together can be more efficient in handling periods of low prices. In fact, this is a great opportunity for those with solid financial positions to invest in undervalued companies, and thus, strengthen their competitiveness in the future. This dissertation focuses in assessing the potential value added from a deal between ExxonMobil and Anadarko. The former with an integrated business model and a strong balance sheet, and the latter, solely dependent on the upstream segment which means being more exposed to fluctuations in oil prices. Thereafter, an in-depth company and industry analysis is conducted in order to establish which assumptions to apply to the valuation methods. The individual and combined analysis is supported by a literature review on valuation and M&A. Based on a theoretical framework, the merged entity valuation is developed, followed by a proposed price, method of payment and acquisition strategy. Anadarko’s standalone valuation suggests that its average share price during 2015 is undervalued with 13% upside potential. Due to synergies of $33,96Bn, the proposed deal has a premium of 49% and the final suggestion being an all-cash offer. |
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Merger and acquisitions : the case of ExxonMobil and AnadarkoDomínio/Área Científica::Ciências Sociais::Economia e GestãoThe rationale under Merger and Acquisitions (M&A) has a huge spectrum, but it is always assumed to be a way of increasing shareholders value. The recent downturn in the oil and gas (O&G) market has been creating some speculations where M&A arises as a way to join companies that together can be more efficient in handling periods of low prices. In fact, this is a great opportunity for those with solid financial positions to invest in undervalued companies, and thus, strengthen their competitiveness in the future. This dissertation focuses in assessing the potential value added from a deal between ExxonMobil and Anadarko. The former with an integrated business model and a strong balance sheet, and the latter, solely dependent on the upstream segment which means being more exposed to fluctuations in oil prices. Thereafter, an in-depth company and industry analysis is conducted in order to establish which assumptions to apply to the valuation methods. The individual and combined analysis is supported by a literature review on valuation and M&A. Based on a theoretical framework, the merged entity valuation is developed, followed by a proposed price, method of payment and acquisition strategy. Anadarko’s standalone valuation suggests that its average share price during 2015 is undervalued with 13% upside potential. Due to synergies of $33,96Bn, the proposed deal has a premium of 49% and the final suggestion being an all-cash offer.Várias são as razões apontadas para justificar fusões e aquisições, mas todas têm subjacente o pressuposto da criação de valor para os acionistas. Num período de queda histórica do preço do petróleo, estas surgem como uma alternativa para a criação de estruturas mais eficientes. A fragilidade financeira experienciada pelo setor emerge também como uma oportunidade. Empresas menos vulneráveis às oscilações dos preços podem aumentar a sua competitividade futura investindo em empresas que viram o seu valor de mercado desvalorizar significativamente. Assim, esta dissertação foca-se na análise da criação de valor que pode resultar da aquisição da Anadarko, uma empresa unicamente dependente da exploração e produção de petróleo, pela ExxonMobil, com um modelo de negócios integrado que vai desde a exploração até à comercialização. Uma análise detalhada à indústria e a ambas as empresas permite estabelecer os pressupostos necessários para o desenvolvimento dos modelos de avaliação e da estratégia de aquisição. Adicionalmente, uma análise da literatura académica sobre modelos de avaliação e fusões e aquisições sustenta os modelos desenvolvidos, bem como as recomendações relativas ao preço, modo de pagamento e estratégia de aquisição. A avaliação da Anadarko sugere que o preço médio por ação verificado ao longo do ano de 2015 está subavaliado em 13%. Assim, com sinergias avaliadas em $33,96 biliões, a aquisição proposta tem um premium de 49% e deverá ser paga unicamente em dinheiro.Assunção, António Luís Borges deVeritati - Repositório Institucional da Universidade Católica PortuguesaMarcelino, Joana Andreia Boavida2016-12-14T14:37:57Z2016-10-2120162016-10-21T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/masterThesisapplication/pdfhttp://hdl.handle.net/10400.14/21037TID:201283735enginfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-07-12T17:27:04Zoai:repositorio.ucp.pt:10400.14/21037Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T18:17:28.243621Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
Merger and acquisitions : the case of ExxonMobil and Anadarko |
title |
Merger and acquisitions : the case of ExxonMobil and Anadarko |
spellingShingle |
Merger and acquisitions : the case of ExxonMobil and Anadarko Marcelino, Joana Andreia Boavida Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
title_short |
Merger and acquisitions : the case of ExxonMobil and Anadarko |
title_full |
Merger and acquisitions : the case of ExxonMobil and Anadarko |
title_fullStr |
Merger and acquisitions : the case of ExxonMobil and Anadarko |
title_full_unstemmed |
Merger and acquisitions : the case of ExxonMobil and Anadarko |
title_sort |
Merger and acquisitions : the case of ExxonMobil and Anadarko |
author |
Marcelino, Joana Andreia Boavida |
author_facet |
Marcelino, Joana Andreia Boavida |
author_role |
author |
dc.contributor.none.fl_str_mv |
Assunção, António Luís Borges de Veritati - Repositório Institucional da Universidade Católica Portuguesa |
dc.contributor.author.fl_str_mv |
Marcelino, Joana Andreia Boavida |
dc.subject.por.fl_str_mv |
Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
topic |
Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
description |
The rationale under Merger and Acquisitions (M&A) has a huge spectrum, but it is always assumed to be a way of increasing shareholders value. The recent downturn in the oil and gas (O&G) market has been creating some speculations where M&A arises as a way to join companies that together can be more efficient in handling periods of low prices. In fact, this is a great opportunity for those with solid financial positions to invest in undervalued companies, and thus, strengthen their competitiveness in the future. This dissertation focuses in assessing the potential value added from a deal between ExxonMobil and Anadarko. The former with an integrated business model and a strong balance sheet, and the latter, solely dependent on the upstream segment which means being more exposed to fluctuations in oil prices. Thereafter, an in-depth company and industry analysis is conducted in order to establish which assumptions to apply to the valuation methods. The individual and combined analysis is supported by a literature review on valuation and M&A. Based on a theoretical framework, the merged entity valuation is developed, followed by a proposed price, method of payment and acquisition strategy. Anadarko’s standalone valuation suggests that its average share price during 2015 is undervalued with 13% upside potential. Due to synergies of $33,96Bn, the proposed deal has a premium of 49% and the final suggestion being an all-cash offer. |
publishDate |
2016 |
dc.date.none.fl_str_mv |
2016-12-14T14:37:57Z 2016-10-21 2016 2016-10-21T00:00:00Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/masterThesis |
format |
masterThesis |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10400.14/21037 TID:201283735 |
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http://hdl.handle.net/10400.14/21037 |
identifier_str_mv |
TID:201283735 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
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openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.source.none.fl_str_mv |
reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
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Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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RCAAP |
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RCAAP |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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