This report presents an analysis of North American merger and acquisition activity in the power and utilities industry.
Key Trends in Q1 2014
There was a decrease in the volume and value of deals greater than $50 million, with 7 deals this quarter, compared to 14 the quarter before and 12 during the third quarter of 2013. Total deal value decreased by 58% from the previous quarter from $10.3 billion to $4.4 billion. The average deal size decreased 15% from the previous quarter from $738 million to $626 million.
In Q4 2013 there were two large deals each greater than $3 billion, while this quarter the largest deal by UIL was $2.88 billion. Financial investors accounted for 23% of deals by value, up from 7% during the previous quarter.
In terms of deal type, corporate vs. asset deals remained at close to the same percentages of deal value as last quarter. Corporate deals accounted for 76% of deals and asset deals accounted for 24%. Foreign deals declined this quarter to 13% of deals by value from 46% the previous quarter. Alternative deals continued to represent a small portion of total deal value, at only 4% of deal value this quarter.