Natural Resources and Utilities (NRU) is currently one of the most dynamic sectors for M&A globally, with most regions experiencing high deal levels. This has knock-on implications for NRU treasuries that need to be addressed both now and in the longer term. HSBC examines these implications and some potential treasury strategies to address them.
How does M&A activity impact treasury?
M&A activity affects corporate treasury in multiple respects. In the general sense, it results in a palpable increase in workload. More specifically, it will involve handling a raft of bank relationship and bank account management changes, such as the opening/closing of potentially multiple accounts. One of the consequences of this is the need to change signatories and bank mandates in accordance with the new corporate leadership structure, possibly to an extremely tight timeline.