Chapter 4 Conclusion
The goal of this research was to show the market reaction to the transformation oil and gas companies in the context of mergers and acquisitions in the current conditions of low carbon energy transition. In order to do that, the cross literature review was done, covering different topics in relation to the research. In particular, there were considered thee type of sections. The first included the discussion about the sustainable development, the role of stakeholders and for management and the influence of ESG on companies and its investors. Then the discussion was narrowed to the oil and gas industry and how it is affected by the low carbon transition. Finally, the transition strategies taken by oil and gas companies were discussed. As the result of literature review, the core hypothesis H1: Abnormal positive stock returns for bidder firms (O&G companies) are observed after M&A deal between oil and gas companies and alternative energy solution companies has been formulated, since there are recent studies that tried to assess the market reaction on low carbon energy transition. Then another sub hypothesis H 1.2: M&As with solar and wind companies brings higher returns, has been proposed, because from the point of view of investors and companies it would be interesting to understand what assets to acquire in order to get the highest returns. Both hypotheses were proposed to be tested in short and long-run, because the first reaction of the market shows what are the expectations from the deal and long-term allow to evaluate how well companies are really doing since 2 years after a deal. In order to test hypotheses the conventional research methodology that is widely used in event studies have been proposed, justified and explained. Then data required to the research was gathered and filtered according to sample criteria. The total sample for short-term study have 25 observation since 2003 an up to 2021, consisting of 11 oil&gas traded companies. The long-term study consisted of 16 observations from the 2003 and 2017. What is interesting, during the descriptive statistics part it was revealed that, there are actually not that many deals of public oil&gas companies with renewable energy companies, but such activity has intensified starting from 2010, with majority of acquirers come from Europe with no acquirers from US, what makes think that European companies are more aware of energy transition than their US peers. After the abnormal returns for both hypotheses have been estimated in short-run of event window 3 days before and 3 days after the announcement date. The results show the negative market reaction of -0.34% of abnormal returns with enough level of significance, however during the comparison different types of deals, acquisitions of wind and solar energy show better results. The same pattern was revealed in the long-term study, but in comparison with a short-run the abnormal return for whole sample are positive and by the end of the period of 24 months (2 years) is equal to +14.3%. These results bring to conclusion that investors evaluate such deals as something negative at first sight, when a deal has been just announced, what could tell about their negative expectations, however, after a long period of time these companies illustrate higher abnormal returns than their peers from industry, from what can be assumed that by incorporating their alternative energy solutions in their business structure significantly improve their positions, however, this is actually a question for further research on the topic either their stock returns rise because of improved operation that happened because of energy portfolio operations, or there are other hidden reason for that. Finally, four recommendations, two for managers of oil&gas companies and two for investors have been proposed. Overall, it could be said that decision to diversify energy business and enter alternative energy market through the M&A is the wise decision, and that investor should consider such companies as attractive, especially those with solar and wind energy.  However, taking into account that my study, it is an individual case of oil&gas energy transition there exist a wide range of issues that can be discovered in addition to my study. Here I would propose several recommendations for further researches: Consider the more advanced regression model in order to catch specific reasons for stock prices moves and get fuller picture on M&As. This recommendation goes directly from the Limitation of the study part. If to expand the scope of interest in the topic, then future researches might evaluate this type of transition from the internal study. As I have already assumed several times, acquisition of renewable energy assets have a long-term effect on oil&gas companies, so probably this happens because of serious structural changes in the acquirer’s business. This issue, how such deals affect internal operations, should be also important to clarify, since if it has a positive effect on the operations, then it would be even more incentives or companies to acquire renewable energy assets. Conducting an qualitative study, for example, how companies’ managers assess such transitions, what are their expectations and what they consider as the main reasons for that, also would be an interesting topic to discover Compare from quantitative and qualitative approaches different type of transition strategies and aimed on revealing the most promising one Apply event study and other types proposed above for different markets Eventually, a consulting study for oil&gas companies can be proposed as the result of empirical researches. All in all, there exist quite enough uncovered issues relating to my research.  
В статье «M&A with solar and wind: the market reaction and the abnormal returns» автор анализирует результаты двух исследований, посвященных влиянию сделок на рынок. Он приходит к выводу, что в краткосрочной перспективе сделки с альтернативными источниками энергии могут привести к отрицательной реакции рынка, однако в долгосрочной перспективе они могут привести к положительному эффекту на бизнес. Автор также предлагает провести дополнительные исследования, чтобы выяснить, почему такие сделки приводят к положительному эффекту.