This report presents an analysis of North American merger and acquisition activity in the power and utilities industry.
Key Trends in Q3 2013
This quarter, we saw a notable rise in the volume of deals greater than $50 million – both in quarter-to-quarter and year-over-year terms. There were twelve deals this quarter, compared to seven the prior quarter and eight during the third quarter of 2012.
The average deal size, however, has fallen sharply to $384 million from $1.8 billion during the previous quarter. However, when excluding the MidAmerican acquisition of NV Energy from the prior quarter results, the average deal value decreases to approximately $350 million for the prior quarter, as compared to $384 million this quarter.
Strategic investors accounted for 72% of deals by value, down from 100% during the previous quarter. In terms of deal type, asset deals rose to 56% of deals by value, up from only 9% of deals during the previous quarter.