North American power deals: Mergers & acquisitions report

Q3 2019

While a Canadian deal was the largest transaction this quarter, deal values and volumes both trended downward across North America in the third quarter of 2019. Looking at deal value, it was the lowest-value quarter since Q2 2017. Deal volume was the lowest since Q3 2017.

The quarter also had a notable absence of any mega deals. Renewable energy deals continued to be important, accounting for 50% of the quarterly deal volume and 19% of deal value. Looking ahead, renewable energy continues to be an important focus areas for both strategic and financial investors.
 

“Across North America, total deal value continued to shrink in the third quarter, as mega deals proved hard to find. Overall, while deal volumes fell, the volume of deals involving just assets held steady. This includes the quarter’s biggest deal: Ontario Power Generation’s $2.2-billion acquisition of three natural gas-fired power plants from TC Energy.”

Ken Goodwin, National Deals Leader, Power and Utilities

Q3 Key trends and highlights:

  • Deal value declined to $7 billion in Q3 2019, making it the lowest-value quarter since Q2 2017.
  • Asset deals drove value and volume, at 93% of total deal value and 90% of deal volume.
  • Strategic investors drove value and volume, at 78% of total deal value and 60% of deal volume.
  • Renewables continue to remain a focus area for the sector, as renewable deals accounted for 50% of the quarterly deal volume and 19% of deal value.
  • Inbound activity remains present, accounting for 20% of deal value and volume for the quarter.

Power and Utilities quarterly deals insights

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Helen Bremner

Helen Bremner

Partner, National Industry Leader, Power and Utilities, PwC Canada

Tel: +1 403 509 7404

Eric Clarke

Eric Clarke

Partner, PwC Canada

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Ken Goodwin

Ken Goodwin

Partner, National Valuations Leader, PwC Canada

Tel: +1 416 814 5760

Brian Poth

Brian Poth

National Energy, Utilities, Mining and Industrial Manufacturing & Automotive Consulting Leader, PwC Canada

Tel: +1 416 687 8522

James McLean

James McLean

Partner, Operations, PwC Canada

Tel: +1 403 509 7530

James Strapp

James Strapp

Partner, Power & utilities, PwC Canada

Tel: +1 416 863 1133

Rebecca Chan

Rebecca Chan

Partner, Tax, PwC Canada

Tel: +1 416 365 8831

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