North American power deals: Q3 2014 mergers & acquisitions report

November 2014
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North American power deals: Q3 2014 mergers & acquisitions report

At a glance

12 deals valued at more than $50 million came in this quarter, consistent with the 12 quarterly deals a year ago. Total deal value and average deal value increased by 141% each as compared to Q3 2013.

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

Key trends in Q3 2014

  • This quarter, we observed a similar number of deals greater than $50 million as compared to last quarter and prior year (12 this quarter, 13 last quarter, and 12 from the quarter a year ago).
  • The value of deals greater than $50 million dropped 68%, from $34.9 billion last quarter to $11.1 billion this quarter. However, this quarter's value of deals > $50 million was 141% greater than Q3 2013 and also greater than Q4 2013 and Q1 2014.
  • This quarter, we saw four mega deals (deals greater than $1 billion). The average deal size from the previous quarter dropped 66% (from $2,682 million to $924 million).
  • Strategic investors accounted for 76% of deals by value, down from 93% during the previous quarter.
  • In terms of deal type, asset deals grew from 18% to 81% of deal value as compared to last quarter. Foreign deals remained at close to the same percentage as last quarter (5% this quarter, 2% last quarter). Alternative deals grew significantly to 26% of deal value, from only 8% last quarter.

Download previous Power Deals M&A reports

Also read PwC's Global Power & Renewables Deals 2014 outlook and 2013 review.