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  1. Analysis
August 13, 2019

Deals interview with Intesa Sanpaulo: Disruptive technology is driving power industry take-overs

Alfonso Zuloaga and Luca Matrone at top 10 financial adviser Intesa Sanpaolo shed some light on the trends around recent M&As in the power industry

By Rachel Cordery

Total power industry deals for Q2 2019 worth $31.13bn were announced globally, according to GlobalData.

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The value marked an increase of 85.2% over the previous quarter and a drop of 24.05% when compared with the last four-quarter average of $40.99bn. 

Alfonso Zuloaga, Head of Energy M&A, and Luca Matrone, Head of Energy, Corporate & Investment Banking Division, at top ten financial adviser Intesa Sanpaolo shed some light on the trends around recent M&As in the power industry.

Rachel Cordery (RC) What makes a company a target for takeover?

AZ and LM: In our view the main characteristics are as follows: firstly, the existence of a disruptive technology or business model in the context of the energy transition, and secondly, a sub-optimal scale. Thirdly, different strategic views of shareholders in the current evolution of the energy sector.

Subsequently, the need for financial resources to implement the company’s strategy, and finally, the possibility of vertical integration or of an expansion of the customer base.

(RC) What are the common themes behind the deals already done in the sector in recent months/quarters?

AZ and LM: The main themes of the past months were:

  • Consolidation in the local utilities space
  • Acquisitions of operating renewables portfolios
  • Acquisition of clients’ portfolios
  • And finally, JVs between financial investors and industrial players in the renewables sector and in the energy efficiency sector.

(RC) Where do you see the big opportunities for mergers and acquisitions activity in the future?

AZ and LM: We see that the above-mentioned trends will continue. In addition, we see an increased interest of financial investors that with abundant liquidity in the market are trying to find opportunities in the context of the significant market disruption coming from the energy transition.

We start also to see a greater interest in cross border deals from industrial players willing to expand or consolidate their positions in other geographical markets.

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Free Report
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Delve into the renewable energy prospects for Morocco

In its new low greenhouse gas (GHG) emission strategy to 2050, submitted to the United Nations (UN), the Ministry of Energy Transition and Sustainable Development (MEM) of Morocco suggested to raise the share of renewable capacity in the country’s total power installed capacity mix to 80%.   Morocco currently aims to increase the share of renewables in total power capacity to 52% by 2030. The new strategy plans to increase the share of renewable capacity to 70% by 2040 and 80% by 2050.  GlobalData’s expert analysis delves into the current state and potential growth of the renewable energy market in Morocco. We cover: 
  • The 2020 target compared to what was achieved 
  • The 2030 target and current progress 
  • Energy strategy to 2050 
  • Green hydrogen 
  • Predictions for the way forward  
Download the full report to align your strategies for success and get ahead of the competition.   
by GlobalData
Enter your details here to receive your free Report.

Verdict deals analysis methodology

This analysis considers only announced and completed deals from the GlobalData financial deals database and excludes all terminated and rumoured deals. Country and industry are defined according to the headquarters and dominant industry of the target firm. The term ‘acquisition’ refers to both completed deals and those in the bidding stage.

GlobalData tracks real-time data concerning all merger and acquisition, private equity/venture capital and asset transaction activity around the world from thousands of company websites and other reliable sources.

More in-depth reports and analysis on all reported deals are available for subscribers to GlobalData’s deals database.

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