Mergers and acquisitions: Energy companies need a shock

Some business experts are making it clear that there is only one solution for the energy sector that has taken a hard hit in the recent past. There are analysts in the world of mergers and acquisitions in Canada who are saying energy companies should think about merging or they'll face possible extinction. These suggested mergers may induce a jolt of energy into the sluggish market and even though it won't be an overnight panacea, it could spell good news for shareholders in the long run as well.

Investors have been pulling out of the energy sector steadily over the last few years. Oil and gas companies in particular have suffered as a result. There is a mixed bag of candidates for potential mergers and acquisitions with oil producers leading the pack -- those like Torc Oil & Gas Ltd. and Whitecap Resources Inc.

The contenders in the gas field aren't so clear-cut. Some names that have been bandied about, however, include Tourmaline Oil Corp. and ARC Resources. Both companies, experts say, have solid numbers and management that is well respected. Analysts says mergers should be considered in order to avoid possible extinction.

The mergers and acquisitions world in Canada can be replete with complexities. Getting a lawyer's advice may help a client who is undecided about a possible business venture or may help to answer any questions that seem complicated. Enlisting the help of an experienced lawyer may mean the difference between a successful business venture and one that has problems.

Source: financialpost.com, "Message is clear: Merge or face extinction, BMO tells Canadian energy industry", Michael Bellusci, April 6, 2018

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