Merger and acquisition value in the North American power and utilities industry increased 55 percent in the first quarter of 2015, according to a report from PwC US.
PwC US released its quarterly deals snapshot, North American Power & Utilities Deals: Q1 2015, in which it also said there were seven power and utilities deals with announced values greater than $50 million accounting for $6.8 billion in the first quarter, compared to seven deals worth $4.4 billion in the same quarter in 2014. Strategic investors accounted for 87 percent of total transaction value and 71 percent of total deal volume during Q1 2015, compared to 77 percent and 57 percent, respectively, during the same time period in 2014.
Renewable power deals in Q1 represented six percent of total deal value, with two deals worth $440 million. In Q4 2014, renewables had 15 total deals worth $4.8 billion.
Corporate transactions accounted for three deals totaling $5 billion, or almost three-fourths of total deal value in Q1 2015. According to PwC’s CEO Survey, 52 percent of utilities are planning to form new alliances and 60 percent are working with competitors or would be open to doing so.
“We’ve continued to see alliances and partnerships as one potential avenue for strengthening positions and allowing for improved opportunities, particularly in the renewable and transmission space,” said Jeremy Fago, PwC’s U.S. power and utilities deals leader.
To read the full report, click here.
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