2016 Power and Utilities Deals Are Outpacing Previous Three Full Years

2016-07-01

The number and value of deals announced in the power and utilities (P&U) sector in the second quarter (Q2) of the year were both up when compared with Q2 2015. Deal value was up 835%, while deal volume was up 70%. Though the numbers for Q2 were lower than for Q1, overall, 2016 is proving to be a hot year. Q2 deal activity was “across the gamut of investment classes as electric and gas infrastructure and renewable and traditional generation were all active targets. The rapidly changing makeup of US generation supply continues to create opportunity and drive activity broadly in the space,” according to Jeremy Fago, PwC U.S. P&U deals leader. Fago’s comment was part of the July 28 report “North American Power & Utilities Deals Insights Q2 2016.” The report, based on PwC analysis of data provided by Thomson Reuters and S&P Capital IQ, finds that, “On a value basis, combined deal value for the first two quarters of 2016 is already greater than the annual figures for each of 2013, 2014, and 2015 respectively[,] signifying a strong current deal environment in the P&U sector.” The total value of corporate and asset deals over $50 million in Q1 and Q2 was $69 billion .