Mergers and acquisitions have been part of the landscape for as long as utilities and essential services have been around. And remarkably, not one deal has failed to create a stronger company.
Business compatibility is one key reason utility unions work. Scale is another, as larger companies generally enjoy greater access to capital and other vital resources. Utilities also cooperate in developing technology and shaping regulation that’s essential to long-term health and growth.
Putting essential service M&A together, however, is considerably more difficult. Management teams and boards have weapons at their disposal to discourage hostile offers. So the only option is to reach friendly deals, which can be expensive.
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