Transformational M&A | Freshfields

Our new report, Transformational M&A: energy transition investments, explores how M&A and JVs present a unique and transformative opportunity for companies to propel themselves through climate transition.

Organic growth cannot deliver the climate transition. M&A will be vital. Whether this inorganic transformation takes the form of vertical or horizontal integration, the acquisition or creation of new asset portfolios, or M&A into emerging technologies, transition-related transactions come with a specific, and sometimes acute, set of commercial and legal challenges and complexities.

Follow the links on this page for ten key market trends across opportunities and risks in transition-linked acquisitions and disposals, with key takeaways on delivering successful decarbonisation strategies. The downloadable PDF of the report also provides a breakdown of global data with specific analysis for MENA, Europe, the US and Asia-Pacific, as well as extra background and case studies.

Related services

ESG and sustainability

Energy

Energy transition

ESG competition and collaboration

Mergers and acquisitions

Private capital

Sustainable finance and investment

Sustainable transactions

Transformational M&A 10 key trends

Reports

4 Jun 2024

Increased vertical and horizontal integration

Potential ramifications of government subsidies and incentives granted to a target require detailed investigation.

Reports

4 Jun 2024

Bundling small projects from SME developers into portfolios to create scale

Striking the right balance between development and generating assets in a renewables portfolio is very important.

Reports

4 Jun 2024

Traditional players moving outside of their comfort zones

M&A and JVs allow for a much speedier move into markets where one partner or target has access to and knowledge of a particular territory or has finessed a particular business line.

4 Jun 2024

New technology providers and specialist operators entering projects earlier

Parties should anticipate the path to final investment decision and project commissioning, ensuring appropriate off-ramps.

4 Jun 2024

Geography is critical for many low-carbon technologies

A in new jurisdictions or sub-sectors needs robust diligence, appropriate deal structuring and contractual protections. Allocate more time to scenario planning and contingent downside risk evaluation.

4 Jun 2024

No business is an island: low-carbon investment requires a full value chain

Sellers unable to credibly explain how key business inputs can reliably support the target business may struggle in transactions.

4 Jun 2024

Setting up businesses/projects to facilitate M&A and realise synergies in future is critical

Balancing the need for the right partners at the right time – providing construction expertise, IP, a route to market etc – with the need for shareholders to exit and recycle capital is often critical in a new business area.

4 Jun 2024

Sources of capital driving M&A activity (and their constraints) are changing

A positive ESG score cannot mask a poor credit prospect, but can positively affect deals with marginal economics and/or in a busy M&A deal market with constrained debt liquidity.

4 Jun 2024

Private capital trends are affecting energy transition M&A

Financial investors are discovering the difficulty of assessing and reporting on the (often varied) ESG characteristics and impact of their investments.

4 Jun 2024

Antitrust and FDI controls are influencing energy transition M&A

Getting M&A over the antitrust hurdle primarily requires demonstrating positive externalities (a climate benefit) that offsets harms to competition.

4 Jun 2024

Outlook for transition M&A

M&A is not the only mechanism by which the energy transition will be delivered, but has a far more important role than many appreciate. More conservative and organic change will likely not be enough.