North American power deals: Q4 2013 mergers & acquisitions report

January 2014
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North American power deals: Q4 2013 mergers & acquisitions report

At a glance

The number of deals valued at more than $50 million came in at 14, close to the 13 deals from a year ago. The total value of the deals, however, grew by 110%, and the average value grew by 95%.

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.

Download previous Power Deals M&A reports

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