UK power industry sees a drop of 5% in deal activity in Q4 2018

21 March 2019 (Last Updated March 22nd, 2019 05:38)

UK power industry sees a drop of 5% in deal activity in Q4 2018

The UK power industry saw a drop of 5% in overall deal activity during Q4 2018, when compared with the last four-quarter average, according to GlobalData’s deals database.

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A total of 38 deals worth $2.16bn were announced in Q4 2018, compared to the last four-quarter average of 40 deals.

M&A was the leading category in the quarter with 31 deals which accounted for 81.6% of all deals.

In second place was private equity with four deals, followed by venture financing with three transactions, respectively accounting for 10.5% and 7.9% 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 $1.93bn, while private equity and venture financing deals totalled $228.19m and $2.68m, respectively.

UK power industry deals in Q4 2018: Top deals

The top five power deals accounted for 86.4% of the overall value during Q4 2018.

The combined value of the top five power industry deals stood at $1.86bn, against the overall value of $2.16bn recorded for the quarter. The top announced UK power industry deal tracked by GlobalData in Q4 2018 was Drax Group’s $922.27m asset transaction with Scottish Power Generation Holdings.

In second place was the $420.87m asset transaction with Electricity Supply Board, Green Investment Group, Innogy, Macquarie Infrastructure and Real Assets, Siemens Financial Services and Sumco by Diamond Transmission Partners BBE and in third place was Aurium Capital Markets, Helios Energy Investments and Infracapital Partners’ $196.7m private equity deal with Bioenergy Infrastructure Group.

The $163.59m asset transaction with Belltown Power by Greencoat UK Wind and SIMEC Atlantis Energy’s acquisition of SIMEC Green Highland Renewables for $160.06m held fourth and fifth positions, respectively.

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.

Verdict makes every effort to ensure the accuracy of its deals information. If you spot a mistake, or would like to notify us of a deal which should be included in this analysis, please email us at [email protected]

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.