Finance is still available if the deals are right

Key transactions last year included advising on the sale of Scottish engineering firm RJ McLeod to OCU Group, and the acquisition by Russell Group of the Coatbridge Intermodal Rail Terminal from Freightliner.

Our corporate energy team, led by Glasgow-based global head of Oil & Gas Rosalie Chadwick, was to the fore in advising Ithaca Energy on its £754 million combination with Eni S.p.A. through Ithaca’s acquisition of substantially all of the Italian operator’s UK upstream oil and gas assets, and was also engaged in advising on the contested takeover of AIM-listed Trinity Exploration & Production plc by Lease Holders.

Renewable energy transactions were undertaken across the UK by Scottish lawyers and deals included the sale of the offshore transmission assets of the Moray East Offshore Wind Farm, acting for E.ON on one of the UK’s largest battery storage projects, and advising Tesco on a deal which secures 10 per cent of its electricity requirements from a new solar park.

The firm’s commercial property experts also advised Motor Fuel Group on the £2.5 billion acquisition of 337 petrol forecourts and more than 400 EV charging sites from Morrisons supermarket chain.

The firm’s banking team in Aberdeen, led by Richard Scott, advised lender clients operating in the energy sector on a number of fundraising projects collectively valued at almost £700m, including a £150m lending facility from a group of banks for clean energy group D2Zero, and a £70m revolving credit facility which funded Ashtead Technology’s acquisition of Seatronics and J2 Subsea Ltd.

Also in Aberdeen, the energy team advised Glenn Inniss Investment Limited, the sponsor of the management buyout of international oil and gas services business Proserv Holdings from US private equity sellers; advised on Norwegian operator DNO’s acquisition of a 25 per cent interest in the UKCS Arran field from ONE-Dyas E&P valued at around $60m; advised Challenger Energy Group on the partial divestment of Uruguayan interests and Sound Energy plc on its $45.2m partial divestment of Moroccan oil & gas assets.

Our lawyers played a central role in some of 2024’s most important transactions but it is safe to say that the corporate deals market remains challenging due to economic uncertainty and rising wage costs.

The delay in implementing widely forecast cuts in interest rates has dented confidence in the market and tighter lending conditions or a more conservative approach by mainstream lenders make it a more challenging environment. That said, as demonstrated by the wide range of multi-million-pound deals we have advised on in the last 12 months, finance is available for the right deals.

Recent Budget changes to inheritance tax, which have the potential to significantly increase the inheritance tax payable on the transfer of a business under a will, could mean family-owned businesses will look to restructure or opt for a sale in a bid to manage potential large tax liabilities which would be incurred if passed on to the next generation.

Our strong local offering, with more than 550 staff in Aberdeen, Edinburgh and Glasgow allied to diverse sector experience and a global presence in 27 locations, ensures we are in a strong position to continue to advise clients in major UK and cross-border international transactions.

Barry McCaig is a Partner and Head of Corporate in Scotland, Pinsent Masons