This report presents an analysis of North American merger and acquisition activity in the power and utilities industry.
Key Trends in Q4 2013
This quarter, we saw a rise in the volume and value of deals greater than $50 million. We had 14 deals this quarter, compared to 12 the quarter before and 7 during the second quarter of 2013.
Total deal value grew 124% from the previous quarter from $4.6 billion to $10.3 billion. The average deal size, grew 92% from the previous quarter from $384 million to $738 million. This growth was primarily driven by two large deals this quarter by Fortis and NRG, valued at $4.3 billion and $3.1 billion, respectively.
Strategic investors accounted for 93% of deals by value, up from 72% during the previous quarter.
In terms of deal type, corporate deals rose to 73% of deals by value, up from only 44% of deals during the previous quarter. Foreign deals jumped this quarter to 46% of deals by value from 22% the previous quarter, driven largely by Fortis' (of Canada) merger with UNS Energy, valued at $4.3 billion.