US power industry sees a drop of 43.2% in deal activity in June 2020

27 July 2020 (Last Updated July 27th, 2020 11:49)

US power industry sees a drop of 43.2% in deal activity in June 2020

The US power industry saw a drop of 43.2% in overall deal activity during June 2020, when compared with the last 12-month average, according to GlobalData’s deals database.

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A total of 25 deals worth $791.2m were announced in June 2020, compared to the 12-month average of 44 deals.

M&A was the leading category in the month in terms of volume with 15 deals which accounted for 60% of all deals.

In second place was venture financing with eight deals, followed by private equity with two transactions, respectively accounting for 32% and 8% of overall deal activity in the country’s power industry during the month.

In terms of value of deals, M&A was the leading deal category in the US power industry with total deals worth $709.2m, while private equity and venture financing deals totalled $80.8m and $1.2m, respectively.

US power industry deals in June 2020: Top deals

The top five power industry deals accounted for 94.9% of the overall value during June 2020.

The combined value of the top five power deals stood at $751m, against the overall value of $791.2m recorded for the month.

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

1) The merger of Middle Tennessee Electric Membership and Murfreesboro Electric Department for $302m

2) The $175m asset transaction with Innogy by Enviva Partners

3) Enviva Partners’ $172m asset transaction with Enviva Pellets Greenwood

4) The $52m asset transaction with New Energy Solar by NextEnergy Capital

5) BlackRock, Breakthrough Energy Ventures, Duke Energy and Material Impact’s venture financing of Zero Mass Water for $50m.

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.