Low oil price to spur M&A

Nizar says it’s still possible to make good money.

KUALA LUMPUR: The falling price of crude oil will spur a fresh round of mergers and acquisitions (M&A) among local players in the industry, as companies seek to lower operating costs amid cutbacks in exploration and production (E&P) spending by oil giants.

“Companies would want to take advantage of low oil prices to acquire new capabilities from companies that are in distress. M&A will also allow companies to restructure operations and cope with rising costs,” Deloitte Malaysia’s energy and resources leader Nizar Najib said.