North America’s power industry sees a drop of 11.3% in deal activity in Q3 2020

29 October 2020 (Last Updated October 29th, 2020 18:41)

North America’s power industry sees a drop of 11.3% in deal activity in Q3 2020

North America’s power industry saw a drop of 11.3% in overall deal activity during Q3 2020, when compared to the four-quarter average, according to GlobalData’s deals database.

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A total of 134 deals worth $15.89bn were announced for the region during Q3 2020, against the last four-quarter average of 151 deals.

Of all the deal types, M&A saw most activity in Q3 2020 with 82, representing a 61.2% share for the region.

In second place was venture financing with 39 deals, followed by private equity deals with 13 transactions, respectively capturing a 29.1% and 9.7% 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 $12.05bn, while private equity and venture financing deals totalled $3.51bn and $328.92m, respectively.

North America power industry deals in Q3 2020: Top deals

The top five power deals accounted for 70.7% of the overall value during Q3 2020.

The combined value of the top five power deals stood at $11.23bn, against the overall value of $15.89bn recorded for the quarter.

The top five power industry deals of Q3 2020 tracked by GlobalData were:

1) NRG Energy’s $3.63bn acquisition of Direct Energy

2) The $3.2bn acquisition of Vivint Solar by Sunrun

3) Amazon.com, Baron Capital Group, BlackRock, Coatue Management, Fidelity Management & Research, Soros Fund Management and T Rowe Price Associates’ $2.5bn private equity deal with Rivian Automotive

4) The $1.1bn asset transaction with Equinor by BP

5) OPC Energy’s acquisition of Competitive Power Ventures for $800m.

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.