Regarding the energy industry, one factor of M&A activities is that the cost of purchasing the company is far lower than the cost of starting production of the new production line. According to independent research companies visiting Wall Street companies, the attention of large oil companies such as Marathon Oil Company and Hess may make high profits, and the acquisition in 2007 will see a lot of activities of M&A in the energy industry. "Whether a player promotes private equity transactions or a company sees the combination of virtue and virtue, the activity is likely to be in a prosperous sector" (Weber, 2006, p. 73).
For investors and shareholders in specific sectors, mergers and acquisitions may have a far-reaching impact on commercial sectors and companies. Although some studies show that M&A transactions will "destroy shareholder value" ... compared with those companies that do little or nothing, companies with strong historical transactions get higher returns "(Cobbett, 2005, p. 58). Mergers and acquisitions can create value for shareholders in many ways. A key point in this respect is that a company strengthens its core business by entering a trading entity in the same department, rather than buying the ownership interest of the target company just to expand the scope of buyers.