North America’s power industry sees a drop of 17.2% in deal activity in Q1 2020

24 April 2020 (Last Updated April 24th, 2020 15:41)

North America’s power industry sees a drop of 17.2% in deal activity in Q1 2020

North America’s power industry saw a drop of 17.2% in overall deal activity during Q1 2020, when compared to the four-quarter average, according to GlobalData’s deals database.

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A total of 144 deals worth $8.54bn were announced for the region during Q1 2020, against the last four-quarter average of 174 deals.

Of all the deal types, M&A saw most activity in Q1 2020 with 86, representing a 59.7% share for the region.

In second place was venture financing with 47 deals, followed by private equity deals with 11 transactions, respectively capturing a 32.6% and 7.6% share of the overall deal activity for the quarter.

In terms of value of deals, M&A was the leading category in North America’s power industry with $7.75bn, while private equity and venture financing deals totalled $550m and $238.64m, respectively.

North America power industry deals in Q1 2020: Top deals

The top five power deals accounted for 82.6% of the overall value during Q1 2020.

The combined value of the top five power deals stood at $7.06bn, against the overall value of $8.54bn recorded for the quarter.

The top five power industry deals of Q1 2020 tracked by GlobalData were:

1) WESCO International’s $4.52bn acquisition of Anixter International

2) The $1.3bn acquisition of TerraForm Power by Brookfield Renewable Partners

3) Air Products and Chemicals’ $530m asset transaction with PBF Energy

4) The $360m acquisition of Chanje Energy by J.Streicher Holdings

5) WEC Energy Group’s asset transaction with Invenergy for $345m.

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.