2012 outlook and 2011 review
Mergers and acquisitions activity in renewable power and related clean technology
The report is the fourth in the series on renewables. In the companion report, Power Deals, the trends and dynamics in the wider power utilities and non-renewables generation sector are analysed.
Together the two reports provide a comprehensive global analysis of M&A activity across the power and gas 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, it was correctly forecasted that 2011 would prove a busy year for renewables deals. It also highlighted the step up in interest of Japanese and Chinese buyers which manifested itself in a number of significant recent deals.
Looking ahead, the sector is undergoing a growing maturity and consolidation phase. This evolution leads to the assumption that deal flow will remain significant in 2012. In part, though, this will depend on how the eurozone crisis unfolds. One can assume a continuation of a ‘rolling uncertainty’ scenario affecting the eurozone and wider world sentiment. But, if there are significant adverse events that turn eurozone ‘rolling uncertainty’ into deeper crisis, deal flow is likely to be dampened.