# Why big oil isn't buying small oil ?



## sags (May 15, 2010)

Why so little interest in buying up the small oil companies from the major companies ?

I am sure they know the oil metrics better than most anyone else, but nothing much is happening in acquisitions despite some extreme drops in market cap for some companies.


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## jerryhung (Mar 28, 2011)

they're waiting for the bottom as well?


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## cashinstinct (Apr 4, 2009)

waiting for bankruptcy?


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## AltaRed (Jun 8, 2009)

It takes quite some time to work the machinery in Big Oil to make an acquisition decision, including a Board meeting for anything of significant size. Then there is the friendly overture approach and if receptive, a Board decision in the company on respiration. There is no rush. There are lots of fish in that pond.


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## GoldStone (Mar 6, 2011)

Buyers and sellers can't agree on a fair price.

Energy Watch: Oil and gas deals in Canada halt as prices fail to stabilize - BNN News


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## AltaRed (Jun 8, 2009)

cashinstinct said:


> waiting for bankruptcy?


Better to act before in a receiver's hands.... where court complications then interfere with business transactions.


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## treva84 (Dec 9, 2014)

Perhaps it's a sign?

Suncor, one of the largest, has 1/10th the cash flow they had this time last year, even though they are still turning profits. They also raised their dividend, with a greater than 100% pay out ratio now.

Maybe big oil has been hit so hard they can barely keep themselves afloat, let alone think about gobbling up the competition? 

Granted, when things finally look like they may turn around perhaps then companies will be scrambling to increase their economic moats and the small fish will start to get eaten.


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