Deal Values Decreased in the Power Industry in Q1 2016

Wednesday 8 June 2016, Amsterdam

The report, now available on ASDReports, “Power Quarterly Deals Analysis: M&A and Investment Trends - Q1 2016” report is an essential source of data and trend analysis on the mergers and acquisitions (M&As) and financing in the power industry. The report provides detailed information on M&As, equity/debt offerings, private equity, venture financing and partnership transactions registered in the power industry in Q1 2016. The report discloses detailed comparative data on the number of deals and their value in the past five quarters, categorized into deal types, segments, and geographies. The report provides information on the top private equity, venture capital and advisory firms in the power industry.

Asset Transactions Reported A Decrease In Deal Value In The Power Industry In Q1 2016

Asset transactions, including project financing, self-funded, tax equity, lease and bond financing, and bridge loans for acquisition of assets, registered same number of deals and a decrease in deal value in Q1 2016. The market registered 129 deals worth US$7.5 billion in Q1 2016, as compared to 129 deals worth US$15.4 billion in Q4 2015. On year-on-year basis, asset transactions recorded an increase in the number of deals and a decrease in deal value in Q1 2016, compared to 113 deals worth US$9.8 billion in Q1 2015.

The solar segment reported highest number of asset acquisitions with 50 deals worth US$1.3 billion in Q1 2016, followed by wind energy with 47 deals worth US$3.4 billion, fossil fuels with 15 deals worth US$630.8m and hydro with eight deals worth US$1.2 billion during the same period.

Europe accounted for 46% of the total deals and 47% of the total deal value in asset transactions segment in Q1 2016, with 61 deals worth US$3.6 billion, followed by North America with 33 deals worth US$2.7 billion and Asia-Pacific with 31 deals worth US$1.3 billion during the same period.

Value Of M&A Deals Increased In Q1 2016

M&As or corporate acquisitions in the power industry, registered an increase of 2% in number of deals and 112% in deal value with 89 deals worth US$24.6 billion in Q1 2016, as compared to 87 deals worth US$11.6 billion in Q4 2015. On year-on-year basis, M&As recorded an increase in the number of deals and deal value in Q1 2016, as compared to 84 deals worth US$18.3 billion in Q1 2015.

North America registered same number of deals and an increase in deal value with 21 deals worth US$19.1 billion in Q1 2016, as compared to 21 deals worth US$788.4m in Q4 2015. On the other hand, Europe reported an increase in the number of deals and a decrease in deal value with 44 deals worth US$2.5 billion in Q1 2016, as compared to 37 deals worth US$5.8 billion in Q4 2015.

Capital Raising Through Issuance Of Equity Reported A Decrease In Q1 2016

Equity offerings, including IPOs, secondary offerings, and PIPEs, registered a decrease in the number of deals and deal value with 63 deals worth US$11 billion in Q1 2016, as compared to 64 deals worth US$14.5 billion in Q4 2015. On year-on-year basis equity offerings recorded an increase in the number of deals and deal value in Q1 2016, as compared to 46 deals worth US$5.1 billion in Q1 2015.

IPOs in the power industry reported an increase in number of deals and a decrease in deal value with six deals worth US$92.3m in Q1 2016, as compared to five deals worth US$3 billion in Q4 2015.

Capital raising, through issuance of debt instruments, including public debt offerings and private debt placements, registered a decrease in the number of deals and deal value with 73 deals worth US$17.1 billion in Q1 2016, as compared to 113 deals worth US$21.6 billion in Q4 2015. On year-on-year basis, debt offerings recorded a decrease in the number of deals and deal value in Q1 2016, compared to 118 deals worth US$35.2 billion in Q1 2015.

Venture Capital Investments Decreased In Q1 2016

Venture capital financing in the power industry registered an increase in the number of deals and a decrease in deal value in Q1 2016 with 30 deals worth U$285.3m, as compared to 25 deals worth US$876.1m in Q4 2015. On year-on-year basis, venture financing deals recorded an increase in the number of deals and a decrease in deal value with 21 deals worth US$305.6m in Q1 2015.

GE Ventures LLC, Total Energy Ventures and Constellation Technology Ventures made investment in three deals each worth US$94.5m, US$47m and US$43.6m respectively between Q1 2015 and Q1 2016.

Deals In North America Decreased In Q1 2016

North America registered a decrease in the number of deals and an increase in deal value with 182 deals worth US$41.3 billion in Q1 2016, as compared to 265 deals worth US$24.7 billion in Q4 2015. On year-on-year basis, the number of deals registered a decrease in the number of deals and an increase in deal value in Q1 2016, as compared to 276 deals worth US$39.1 billion in Q1 2015.

Europe registered a decrease in the number of deals and deal value with 186 deals worth US$13.1 billion in Q1 2016, as compared to 207 deals worth US$43.7 billion in Q4 2015. On year-on-year basis, the number of deals registered an increase in the number of deals and a decrease in deal value in Q1 2016, as compared to 177 deals worth US$53.9 billion in Q1 2015.

Asia-Pacific registered an increase in the number of deals and a decrease in deal value with 210 deals worth US$38.5 billion in Q1 2016, as compared to 192 deals worth US$46 billion in Q4 2015. On year-on-year basis, the number of deals registered an increase in the number of deals and deal value in Q1 2016, as compared to 185 deals worth US$30.3 billion in Q1 2015.