Power & Renewables Deals

2013 outlook and 2012 review

The 2013 Power & Renewables Deals outlook is the latest in our annual series in which we look at mergers and acquisitions activity in the power, utilities and renewables sector. This year for the first time we bring together our previously separate power and renewables deals analysis into one report, reflecting the increasing mainstream role that renewables play in the generation mix.

2013 deal outlook: sector contrasts set the scene for deal revival

  • The M&A investment share from institutions, such as insurance, pension and sovereign wealth funds, has more than doubled year on year, according to PwC’s annual Power & Renewables Deals report. Together with infrastructure funds, institutions accounted for a third of all power and renewables deal value in 2012.
  • Differences in corporate appetite have the potential to add to deal flow. While state-owned enterprises in China and trading houses in Japan are very much in an expansionist mode, many European power utility companies remain more tilted towards the divestment rather than the acquisition side of the deal table.
  • The era of cheap gas in the US has transformed valuations and M&A strategies. But the report warns that low prices cannot be taken for granted and the big M&A prizes in the US in 2013 could go to those with the foresight to correctly time the eventual upturn in gas prices.

In the report, we highlight the key developments that are likely to characterise 2013 M&A activity in the sector worldwide.