This report presents an analysis of North American merger and acquisition activity in the power and utilities industry.
Key Trends in Q2 2014
This quarter, we saw a large increase in the volume and value of deals greater than $50 million. We had 13 deals this quarter, compared to 7 the previous quarter and 7 during the second quarter of 2013.
Total deal value increased by almost 700% from the previous quarter from $4.4 billion to $34.9 billion.
The average deal size increased 328% from the previous quarter from $626 million to $2.7 billion. Key drivers to the growth in deal value this quarter were the Exelon / Pepco deal for $12.2 billion, the Wisconsin Energy / Integrys deal for $9.1 billion, as well as 4 other mega deals > $1 billion.
Strategic investors accounted for 93% of deal value, up from 77% during the previous quarter. In terms of deal type, corporate vs. asset deals remained at close to the same percentages of deal value as compared to previous quarter, with corporate deals representing 82% of total deal value and asset deals accounting for the remainder in Q2 2014.
Inbound investment declined this quarter to 2% of deals by value from 13% the previous quarter. Alternative deals increased to 8% of deal value, but continue to represent only a small portion of total deal value.