North American power deals: Q1 2013 mergers & acquisitions report

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05/01/2013 by Power & utilities
North American power deals: Q1 2013 mergers & acquisitions report

At a glance

The North American power and utilities mergers & acquisitions (M&A) market experienced an uptick in both volume and value in the first quarter of 2013.

The number of deals valued at more than $50 million more than doubled during Q1 2013 compared to a year ago, but the average deal value dropped to $333 million compared to $564 million.

Find out more by reading this issue of Power Deals from PwC's US Power and Utilities practice.

This report presents an analysis of North American merger and acquisition activity in the power and utilities industry.

Key trends in Q1 2013

  • This quarter, we saw hybrid power companies divesting merchant exposure, as showcased by the top two deals involving Dominion and Ameren.
  • Unlike Q4 2012, which saw heightened alternative investment activity (accounting for six of the top 10 deals), alternative energy sources accounted for only two deals this quarter.
  • Overall, we saw nine deals greater than $50 million this quarter, down from 13 during the previous quarter.
  • In terms of the breakdown of the type of investor involved in these deals, strategic investors accounted for 57% of all acquisitions greater than $50 million, unchanged from Q4 2012.