MSc in Energy Law, Business, Regulation and Policy > Mergers and Acquisitions in the Energy Industry

Mergers and Acquisitions in the Energy Industry

Teaching hours and credit allocation: 16 hours, 3 credits

Course assessment: exams

Aims

In the 1990s, when most of the European energy markets were still monopolized, the European Union started to impose liberalizing directives on the Member States. Thus, by opening up markets for competition and by pushing forward for emissions decrease as well as for renewable energy investments, a wave of mergers and acquisitions [M&A;] among energy companies has swept across Europe during the past few years. This changing scene has now become an increasingly important area for energy companies. Within this context, this course shall examine the strategic and practical advantages and disadvantages of M&A;, the statutory requirements and procedures, the documentation required and the relevant case law while emphasizing¬† the practical aspects of the business lawyer’s role in structuring the transaction, in identifying, explaining and negotiating the business/legal terms and in negotiating the acquisition agreements.

Learning outcomes

On completing the course students will be able to:

  • understand the necessity of having an effective corporate structure
  • understand how corporate structure impacts and affects market structure
  • understand the deal-making priorities of every segment of the energy industry
  • assess organic growth, cost escalation and its containment, profitability pressures rationalization of resource portfolios and tax treatment as motives dictating merger activity
  • understand the managerial actions that distinguish successful from failing combinations through reality testing such as having a premerger planning, resolving communication issues, developing staffing plans, indicating a governance model with clear roles and responsibilities
  • assess the interaction M&A; in the energy sector and competition law

Content

  • Valuation Methods and Financial Analysis
  • Strategic Rationale for Acquisitions
  • Strategies for Successful Due Diligence and Post-Acquisition Integration
  • Effective Negotiation
  • European Energy Industry
  • Mergers: operation, statistics, significance
  • Acquisition documents
  • Potential structures of a merger and acquisition transaction
  • Successorship to assets and liabilities: the effect of an acquisition on outstanding patent licenses, leases, collective bargaining agreements, pensions and contingent product, environmental and civil rights claims
  • Anti-takeover defences
  • Protecting consumer interests in mergers and acquisitions
  • Sources of EU law that govern merger and acquisition transactions
  • Accounting and tax issues in mergers and acquisitions