2012 outlook and 2011 review
Mergers and acquisitions activity within the global power and utilities market
The report is the latest in the annual series on dealmaking. It examines activity in all parts of the sector except for renewables. The companion report, Renewables Deals, looks at the trends and dynamics in the renewable energy deal sector. Together the two reports provide a comprehensive global analysis of M&A activity in the power utilities sector.
This year the report opens with a discussion of the outlook for the year ahead and identify some of the main themes expected to be at work. In the last report, the release of pent-up US deal demand into the big deal flow seen in the previous 12 months, was correctly forecasted. The interest of Chinese buyers which has now manifested itself in a number of large deals was also highlighted.
Looking ahead, much will rest on the continuing eurozone crisis story and the extent to which economic growth signals can provide the confidence to support eurozone strategies. The crisis has halted some of the strong rebound in deal flow that we saw earlier last year. The underlying fundamentals for a resumption in deal flow remain in place but confidence in the wider economic outlook will be pivotal to whether it happens or not.