Mergers, Acquisitions, and Divestiture

The pace and scale of the sustainability transition—and the business-model transformation needed in some industries—require corporate investments beyond capex, R&D, and other organic investments.

Mergers, acquisitions, and divestitures are important tools for CFOs to make changes in a company’s strategy and actively manage its corporate portfolio to adapt to the changing environment and sustainability disruptions.

In our experience, Mergers and Acquisitions can be a tool for large transformations related to the sustainability transition, while capex can be used for adjustment and maintenance.
CFO Taskforce Insight, RWE

This is evidenced by a recent growth of sustainability-related M&A transactions. According to EY, a global accounting firm, 2020 saw 74 transactions in renewable energy globally, valued at $14.8 billion, and the market had doubled year on year by mid-2021. The firm also found that 46 percent of sellers in its 2021 Global Corporate Divestment Study said environmental, social, and governance (ESG) issues directly influence divestment plans.