North American power and utilities deals insights: Q3 2017

Volume declines, but value is at year high

While the third quarter of 2017 saw a decline in total deal volume from Q2 2017 and Q3 2016, deal activity in the power and utilities industry showed strong total deal value in Q3 2017 – the highest quarterly deal value since Q3 2016. Total deal value was $44.9 billion, up from $6.5 billion in Q2 2017, but down from $78.1 billion in Q3 2016.

Four mega deals occurred in Q3 2017 totaling $43.0 billion in deal value, compared to one mega deal in Q2 2017 and six mega deals in Q3 2016.

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Key trends and highlights

This quarter, deal value was driven by two sizable utility transactions, continuing the infrastructure theme, as well as a private buyout of one of the major independent power producers.

Corporate deals accounted for $41.8 billion or 93 percent of total deal value; and deal volume was evenly split between Corporate deals and Asset deals, with five each. Strategic deals continued to generate the largest share of deal value, with $25.5 billion or 57 percent of total deal value; however, Financial buyers were active in Q3 2017 with five total deals. Q3 2017 saw two inbound deals driven by Canadian investors, down from seven in Q2 2017.

PwC’s Deals group can advise power and utility companies and private equity firms on key M&A decisions, from identifying acquisition or divestiture candidates and performing detailed buy-side diligence, to developing strategies for capturing post-deal profits and exiting a deal through a sale, carve-out or IPO. Please let us know if you have any questions.

Contact us

Jeremy Fago
US Power and Utilities Deals and Valuation Leader
Tel: +1 (720) 931 7285
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Rob McCeney
US Energy & Infrastructure Deals Partner
Tel: +1 (713) 356 6600
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Kenyon Willhoit
US Power & Utilities Deals Director
Tel: +1 (720) 931 7462
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