Clarity of message will be essential in evolving sector

The global energy market is evolving rapidly, with regional differences shaping investment and business strategies.

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Diverging energy policy in the UK, US, and Middle East reflects the distinct economic, political, and environmental priorities in each region. These shifting dynamics create both opportunities and challenges, particularly for businesses looking to expand into new markets and those that are considering M&A activity.

In the UK, the push for a greener future, where renewable energy makes up a greater proportion of the overall energy mix, is well underway, with initiatives such as GB Energy and the North Sea Transition Task Force leading the charge. Whilst the aim of these organisations is to reduce reliance on fossil fuels, there remains uncertainty as to how the energy transition will be delivered and businesses are therefore having to navigate these changes carefully.

In contrast, the US is experiencing a renewed emphasis on oil and gas under President Trump, with the return of policies favouring fossil fuel exploration and production. The energy market in this region is therefore on a different pathway to that of the UK with this divergence potentially creating opportunities for companies that are currently more aligned with oil and gas activities.

Meanwhile, the Middle East continues to leverage its dominant position in oil production to facilitate investment in renewable energy projects, with a similar approach being adopted within Norway.  Countries in the Middle East are adopting a mixed-energy strategy, balancing support for their long-standing oil industry with an increasing focus on sustainability.

Amid these regional variations, businesses seeking to sell or expand must be prepared to adopt an international mindset. Companies that limit their reach may struggle to find the right investors or partners.

For example, a UK-based energy company with a focus on oil and gas operations could attract more attention from US or Middle Eastern investors so understanding where demand exists is key to achieving a successful deal.

In addition to identifying the right market, businesses considering overseas expansion must ensure their proposition is clear. They must be confident in articulating what they offer, why it is valuable, and how it fits into the evolving global energy landscape. A confused message can weaken a company’s position and deter potential buyers or partners.

There is, however, no one-size-fits-all strategy for entering new markets or securing investment, with each transaction requiring a personalised approach, tailored to the specific needs of the business and the priorities of the target region.

This is where expert advice becomes invaluable. Advisers not only help refine a company’s proposition but also provide critical insights into market conditions. They understand the varying requirements and policy landscape of different regions and can guide businesses on how best to position themselves. Importantly, they should also have the appropriate networks to introduce businesses to key players in international markets.

The international aspects of the energy sector have been a factor for businesses operating in the North East for some time. Similarly, a significant proportion of energy related transactions that Johnston Carmichael Corporate Finance team has been involved with have had an international context, with the team recently advising on cross-border sales to businesses headquartered in the US, Norway, and the Middle East.

As the global energy landscape becomes increasingly fragmented, it is vital that businesses considering M&A adopt targeted outreach, understand regional market trends, refine their message, approach expansion with a clear, confident strategy, and seek expert guidance.

Businesses that adapt to the changing marketplace, are able to communicate effectively to the relevant target audience and seek appropriate professional advice will be well positioned to achieve success.