Power deals annual review 2010

Mergers and acquisitions activity within the global utilities and gas markets

The global power deal market is finally seeing an upward trend in momentum from the lows reached in 2009, with the total deal value in the non-renewable electricity and gas sectors up 19% year on year from US$97.6bn to US$116bn in 2010 – a year which also saw an end to the deal stalemate in the US with a renewed deal flow that looks set to continue this year. Compared to the heady mountain of power deals transacted between 2005-2008, deal values remain low but conditions are in place for a return at least to the foothills of these peaks, according to PwC’s annual Power Deals review.

Globalisation of the power sector is moving forward on a number of fronts with, for example, companies looking at gaining a larger presence in growth markets, acquisitions of global network asset portfolios with strong international interest in infrastructure assets and signs of greater Chinese involvement, not just from grid companies but also independent power producers.