The trend towards aggregation in European gas networks has become strongly evident in sector deal making. It’s a development that we predicted in earlier reports in this series and that will continue. We also now expect attention to turn to potential value in gas generation assets. Market conditions have left many plants mothballed. But, despite the current economics, gas assets remain an attractive long-term investment opportunity.
European power and renewables deal flow is holding up despite continuing uncertainty about government energy policy in a number of countries. The US$27.7bn total value of deals for European targets in the first half of 2013 is a third (33%) up on the US$20.8bn total for the last six months of the previous year. Indeed, it is not far off the US$29.4bn announced in H1 2012, a figure that was considerably buoyed by the US$11.1bn GDF Suez/International Power transaction.