10 key trends in transition M&A
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.
As regulatory pressure on companies to decarbonise builds over the coming years, accompanied by pressure from shareholders, customers and other stakeholders, we see an increasingly important role for M&A in corporate transformation.
Regional, technological and sectoral variations are providing a wide range of opportunities for successful and value accretive M&A for both buyers and sellers in a critical and exciting set of industries, but those opportunities inevitably come with significant challenges and risks to be understood, analysed, mitigated and addressed.
'Legal risks will be in sharp relief in many transactions due to the changing regulatory landscape surrounding nascent transition industries, potentially in new and emerging markets', says Head of Client Sustainability and Environment Jake Reynolds. 'The challenges posed by M&A of this nature may be acute, but transformation is rarely a smooth ride. While there will be issues and obstacles to navigate, with the right preparation, structuring and advice, there is real value to be unlocked in tandem with substantial climate benefits.'
How Freshfields can help
In a world of increasing regulation, stakeholder influence and rising expectations from society, it’s clear that sustainability is a board- and C-suite-level priority. We have a long track record of advising the world's leading national and multinational corporations and financial institutions on ground-breaking and business-critical challenges, including climate focused M&A.
Understanding the legal landscape of environmental, social and governance issues across jurisdictions is essential in building a resilient business. Throughout this report, you have seen just a few of the successes we have helped our clients realise.
We understand both the local intricacies and global strategies needed to get complex and transformational transactions over the line. Our team of more than 2,800 lawyers and other legal professionals delivers global results from our 30 offices worldwide.
To discuss anything you found interesting in this report, please get in touch with our Head of Client Sustainability and Environment Jake Reynolds or any of your usual Freshfields contacts.
Transformational M&A 10 key trends
- 01. Increased vertical and horizontal integration
- 02. Bundling small projects from SME developers into portfolios to create scale
- 03. Traditional players moving outside of their comfort zones
- 04. New technology providers and specialist operators entering projects earlier
- 05. Geography is critical for many low-carbon technologies
- 06. No business is an island: low-carbon investment requires a full value chain
- 07. Setting up businesses/projects to facilitate M&A and realise synergies in future is critical
- 08. Sources of capital driving M&A activity (and their constraints) are changing
- 09. Private capital trends are affecting energy transition M&A
- 10. Antitrust and FDI controls are influencing energy transition M&A
- Outlook for transition M&A
Key contacts
James Chapman Partner
London
Philip Morgan Partner
Singapore
Samira Afrasiabi Partner
London
Alon Gordon Partner
London
Richard Thexton Partner
London
Graham Watson Partner
London
Bukunola Alakija Counsel
London
Laurent Bougard Counsel
Hong Kong
Sarah Jensen Counsel
London
