The global power mergers and acquisitions (M&A) market saw transaction volumes reaching $158 B in 2018 according to GlobalData.
The largest announced M&A deal in the power industry in 2018 was the acquisition of Innogy by E.ON for $52.9 B.
GlobalData’s latest theme report ‘M&A in Power - Thematic Research’ reveals that the solar energy segment registered the highest number of M&As during the period 2015 – 2019 YTD with 661 M&A deals. It is followed by T&D, wind, fossil fuels and hydropower segments, with 654, 461, 305 and 214 M&A deals, respectively.
The report highlights that over the past few years, the power industry has seen a transition towards sustainable clean energy. Power utility companies in mature markets are now witnessing a wave of consolidations, looking to create scale due to the shift towards renewable energy sources, which is pushing them to alter their business models. The consolidation through acquisitions is driven mainly by few companies’ incapability to attain that organically and the acknowledgment that companies require collaboration or cooperation for this transition to occur.
Source: ESI Africa