North American power and utilities deals insights: Q2 2019

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Executive summary

Deal value returned to the strongest level since Q2 2018, even in the absence of any mega deals ($5+ billion), driven largely by deals from financial investors. The J.P. Morgan and El Paso deal was the largest deal this quarter and it highlights investments made by financial investors in the sector, as they see potential for attractive returns. Additionally, we saw a continuation of themes in the Power & Utilities deals market this quarter, with yield, access to infrastructure, rebalancing portfolios, and balance sheet rationalization driving deal activity. Renewables played a more limited role in deal value this quarter with 26%, however continued to represent a focus area for deal activity.

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Trends and Highlights

  • Total deal value increased to $12.3 billion in Q2 2019, making it the highest-value quarter since Q2 2018.
  • Financial deals drove deal value for the quarter (61%), a notable data point as Strategic deals typically drive reported deal value in the sector.
  • While Corporate deals drove a higher percentage of deal value (55%), Asset deals drove deal volume (69%).

Contact us

Jeremy R. Fago

Principal, US Power & Utilities Deals Leader, PwC US

Kenyon Willhoit

US Power & Utilities Deals Principal, PwC US

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