North American Power Deals: Q4 2015 mergers & acquisitions report

February 2016

At a glance

Q4 2015 North American Power Deals

In this quarter’s analysis, we saw an overall drop in power and utilities deal activity as potential acquirers took stock of recent valuations and associated premiums in the evaluation of future growth opportunities.

This report presents an analysis of North American merger and acquisition activity in the power and utilities industry.

Key trends this quarter

  • This quarter, we saw a large decrease in volume and value of deals greater than $50 million, when compared to the previous quarter.

  • There were 12 deals greater than $50 million this quarter, compared to 18 the previous quarter and 22 during the fourth quarter of 2014.

  • Total deal value reached $11.5 billion, compared to $45.5 billion in the previous quarter.

  • There were two mega deals (deal value > $1 billion) this quarter, compared to seven mega deals in the previous quarter.

  • Average deal size decreased to $959 million from $2.5 billion in the previous quarter, down 62 percent.

  • Eight of the 12 transaction this quarter were strategic, accounting for 86 percent of deals by value, down from 99 percent of deals by value during the previous quarter.

  • Corporate deals decreased to 58 percent of deals by value, compared to 89 percent the previous quarter.

  • There were three inbound deals this quarter accounting for 15 percent of deal value. Similarly there were three inbound deals in the previous quarter.

  • Renewable power deals accounted for 8 percent of deals by value, a decline from 14 percent of deals by value in the previous quarter.
     

Download previous Power Deals M&A reports