This report presents an analysis of North American merger and acquisition activity in the power and utilities industry.
Key trends in Q1 2015
This quarter, we saw a dramatic decrease in the volume and value of deals greater than $50 million, when compared with the previous quarter. However, the value of deals was slightly higher than the first quarter of 2014 while volume remained flat.
There were only 7 deals this quarter, compared to 22 the quarter before and 7 during the first quarter of 2014.
Total deal value decreased by 61% from the previous quarter from $17.4 billion to $6.8 billion.
Strategic investors accounted for 87% of deals by value, up from 65% during the previous quarter. In terms of deal type, corporate deals rose slightly to 74% of deals by value, up from 72% of deals during the previous quarter.
Foreign deals declined this quarter to 6% of deals by value from 8% the previous quarter.
The Alternative deal percentage declined and represented a small portion of total deal value, at only 6% of deal value this quarter, down from 28% the quarter before.
The average deal size increased 23% from the previous quarter from $790 million to $972 million.
There was only 1 mega deal this quarter (deal > $1Bn) – the Iberdrola / UIL deal, valued at $4.7 billion, compared with 4 mega deals last quarter.