Energy mart to drive Steel M&A: Houlihan Lokey
Jun 12, 2012 | 06:37 PM
| Michael Cowden
TORONTO The steel industry is gearing up for another round of mergers and acquisitions, according to one investment bank executive, and energy and energy tubulars are playing no small part in the latest push for consolidation.
"What is driving current M&A activity? Clearly, natural gas has a significant impact," said Daniel Sullivan, director of the industrial group at Los Angeles-based Houlihan Lokey.
Roughly $98 billion will be required to build U.S. natural gas infrastructure in the next 10 years, Sullivan said. That infrastructureeverything from piping to storage capacityis "massively steel-intensive," he added.
He also noted that the $98-billion figure doesnt take into account other natural-gas-related sectors, such as liquefied natural gas (LNG) terminals, power plants and chemical processing.
"This is a steel story as much as it is a natural gas story," Sullivan told an audience gathered at the recent Platts Third Annual SBB Shale Play Tubulars Conference in Pittsburgh.....
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