North America’s power industry sees a rise of 37.6% in deal activity in Q4 2020

20 January 2021 (Last Updated January 20th, 2021 12:26)

North America’s power industry sees a rise of 37.6% in deal activity in Q4 2020

North America’s power industry saw a rise of 37.6% in overall deal activity during Q4 2020, when compared to the four-quarter average, according to GlobalData’s deals database.

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A total of 205 deals worth $19.93bn were announced for the region during Q4 2020, against the last four-quarter average of 149 deals.

Of all the deal types, M&A saw most activity in Q4 2020 with 119, representing a 58.05% share for the region.

In second place was venture financing with 63 deals, followed by private equity deals with 23 transactions, respectively capturing a 30.7% and 11.2% 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 $17.43bn, while private equity and venture financing deals totalled $2.03bn and $469.53m, respectively.

North America power industry deals in Q4 2020: Top deals

The top five power deals accounted for 66% of the overall value during Q4 2020.

The combined value of the top five power deals stood at $13.15bn, against the overall value of $19.93bn recorded for the quarter.

The top five power industry deals of Q4 2020 tracked by GlobalData were:

1) Avangrid’s $8.3bn acquisition of PNM Resources

2) The $1.35bn merger of Star Peak Energy Transition and Stem

3) KKRInc and Nextera Energy Partners’ $1.3bn asset transaction with NextEra Energy Resources

4) The $1.2bn asset transaction with Terra-Gen by Ameren Missouri

5) Caisse de depot et placement du Quebec’s private equity deal with Invenergy Renewables for $1bn.

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.

 

Visit our ‘Power Deals Dashboard’ for the latest trends in M&A, PE, and VC activity, top deals and advisory league tables in the power industry.