The issue
Our client, a leading international oil and gas enterprise, was considering the potential acquisition of a downstream oil and gas business with over 350 sites in Africa. The client asked PricewaterhouseCoopers to assess the environmental risks and liabilities associated with the acquisition target.
Our approach
PricewaterhouseCoopers’ environmental due diligence specialists:
- Helped the client understand the nature of the local regulatory regimes—and potential liabilities—under which the target operated
- Identified significant contaminated land liabilities at a number of target sites
- Assessed the capital expenditures required for compliance with new environmental legislation and internal performance standards
The outcome
PricewaterhouseCoopers’ advice enabled the client to fully understand the potential liabilities associated with the proposed transaction, and thereby develop a realistic valuation of the target business. At the same time, the client appreciated the extent of the investment required to upgrade the target’s facilities.
