UK power industry sees a drop of 25% in deal activity in Q2 2020

28 August 2020 (Last Updated August 28th, 2020 15:02)
UK power industry sees a drop of 25% in deal activity in Q2 2020

The UK power industry saw a drop of 25% in overall deal activity during Q2 2020, when compared with the last four-quarter average, according to GlobalData’s deals database.

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A total of 27 deals worth $1.59bn were announced in Q2 2020, compared to the last four-quarter average of 36 deals.

M&A was the leading category in the quarter with 20 deals which accounted for 74.1% of all deals.

In second place was venture financing with six deals, followed by private equity with one transactions, respectively accounting for 22.2% and 3.7% of overall deal activity in the country’s power industry during the quarter.

In terms of value of deals, M&A was the leading deal category in the UK power industry with total deals worth $1.56bn, while private equity and venture financing deals totalled $17.34m and $8.96m, respectively.

The UK power industry deals in Q2 2020: Top deals

The top three power deals accounted for 79.2% of the overall value during Q2 2020.

The combined value of the top three power deals stood at $1.26bn, against the overall value of $1.59bn recorded for the month.

The top three power industry deals of Q2 2020 tracked by GlobalData were:

1) Diamond Transmission Partners Walney Extension’s $555.6m asset transaction with Orsted, PFA Holding and PKA

2) The $395.46m asset transaction with Vattenfall Wind Power by Greencoat UK Wind

3) Origin Energy’s $311.29m acquisition of Octopus Energy

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.