By: MICHEAL KAUFMAN
Published: Dec 29, 2014 at 2:17 pm EST
Ashley Armstrong, the Telegraph’s merger and acquisition columnist, hinted at the possibilityof a merger between London-based BP plc (NYSE:BP) and Netherlands-based Royal Dutch Shell plc (ADR) (NYSE:RDS.A) in a piece over the weekend.
M&A activity during 2014 reached the $3.5 trillion mark, the highest since the 2008 financial downturn. Ms. Armstrong expects more huge deals next year.
She thinks that the decline in commodity prices will act as a catalyst for M&A between mining and natural resources companies. Since this year’s peak in late June, crude oil prices have fallen 45% and are on track to record the biggest decline since the financial crisis. The slump in crude oil prices to $60 per barrel will negatively impact the profitability of some energy companies at the very least, and bring into question the business models of some businesses at worst.