Canadian dealmakers are featured in three of the top 10 North American power and utilities deals in the first quarter of 2019. ENMAX Corp. was the quarter’s top dealmaker with its US$1.3-billion acquisition of Emera Maine, a Maine-based electricity transmission and distribution company.
Other Canadian deals included Columbia Power Corp.’s US$754-million acquisition of a 51% interest in the Waneta Expansion hydroelectric project from Fortis Inc. and Brookfield Renewable Partners LP's US$296-million divestiture of a 25% interest in a 413-megawatt hydroelectric portfolio.
Across all of North America, deal volume remained strong in the first quarter of 2019, driven by asset deals, particularly wind, solar and inbound investments. Overall, wind energy deals represented 20% of total deal value (US$1.6 billion for the quarter).
On a value basis, Q1 2019 was the weakest first quarter in the past four years, with deal value declining from Q4 2018 and in comparison to Q1 2018. Much of this value decline had to do with the absence of any mega deals for the third consecutive quarter. In the power and utilities sector, investors continue to look to the deal market for growth opportunities and to optimize portfolios.
"As we look forward, we continue to expect asset deals, in particular on the renewable side, to drive activity in 2019. Portfolio rationalization, continued decarbonization efforts and expiring renewable tax incentives are influencing transaction behaviour. We also expect Canadian P&U players to feature heavily in the North American deals market."
Partner, National Industry Leader, Power and Utilities, PwC Canada
Tel: +1 403 509 7404
National Energy, Utilities, Mining and Industrial Manufacturing & Automotive Consulting Leader, PwC Canada
Tel: +1 416 687 8522
Partner, Tax, PwC Canada
Tel: +1 416 365 8831