One of the biggest M&A deals in 2021 came in the form of energy powerhouses BHP merging its oil and gas portfolio with Woodside to top off a big year on the M&A front.
The all-scrip deal set to be inked in the second quarter of next year will establish Woodside as a global top 10 independent energy giant by production as well as the largest energy company listed on the ASX worth some 41 billion dollars.
The merger enables Woodside to create scale, offer shareholders a high margin oil portfolio with longlife LNG exposure, and the assets to explore new natural gas and other energy technologies into the portfolio.
But some in the market are wary of the possible negative repercussions of the merger including expansion of the fossil fuel industry which is a target to be phased out by global governments to address climate change.
Whether or not the Woodside and BHP transaction fuels further M&A in the oil and gas sector remains to be seen.