Deal Values Increased in the Power Industry in Q3 2015

GlobalData’s “Power Quarterly Deals Analysis: M&A and Investment Trends – Q3 2015” report is an essential source of data and trend analysis on the mergers and acquisitions (M&As) and financing in the power industry. The report provides detailed information on M&As, equity/debt offerings, private equity, venture financing and partnership transactions registered in the power industry in Q3 2015. The report discloses detailed comparative data on the number of deals and their value in the past five quarters, categorized into deal types, segments, and geographies. The report provides information on the top private equity, venture capital and advisory firms in the power industry.

GlobalData derived the data presented in this report from proprietary in-house Power eTrack deals database and primary and secondary research.

Asset Financing Investments Decreased In The Power Industry In Q3 2015

Asset financing, including project financing, self-funded, tax equity, lease and bond financing, and bridge loans for new builds, acquisitions, and refinancing of assets, recorded a decrease in the number of deals and deal value with 191 deals worth US$67.3 billion in Q3 2015, as compared to 231 deals worth US$70.2 billion in Q2 2015. On year-on-year basis, asset financing recorded a decrease in the number of deals and deal value in Q3 2015, as compared to 358 deals worth US$79.2 billion in Q3 2014.

The solar energy segment registered an increase in the number of deals and deal value with 93 deals worth US$10.8 billion in Q3 2015, as compared to 92 deals worth US$8.9 billion in Q2 2015. On the other hand wind energy segment also reported an increase in the number of deals and deal value with 45 deals worth US$9.7 billion in Q3 2015, as compared to 41 deals worth US$8.2 billion in Q2 2015.

Asia-pacific accounted for 35% of the total deals and 63% of the deal value followed by North America with 25% of the total deals and 9% of the total deal value and Europe with 17% of the total deals and 7% of the deal value in the asset finance segment for Q3 2015.

Value Of M&A Deals Increased In Q3 2015

M&As or corporate acquisitions in the power industry, registered an increase of 33% in number and 139% in deal value with 97 deals worth US$77.6 billion in Q3 2015, as compared to 73 deals worth US$32.4 billion in Q2 2015. On year-on-year basis, M&As recorded an increase in the number of deals and deal value in Q3 2015, as compared to 89 deals worth US$26.2 billion in Q3 2014.

The number of M&A deals was the highest in the solar energy with 28 deals in Q3 2015, followed by energy efficiency with 17 deals and wind with 16 deals. In deal value, fossil fuel segment reported the highest deal value of US$30.1 billion in Q3 2015, followed by energy efficiency with US$17.1 billion during the same period.

Capital Raising Through Issuance Of Equity Reported A Dcrease In Q3 2015

Equity offerings, including IPOs, secondary offerings, and PIPEs, registered a decrease in the number of deals and deal value with 58 deals worth US$10.8 billion in Q3 2015, as compared to 63 deals worth US$11 billion in Q2 2015. On year-on-year basis equity offerings recorded a decrease in number of deals and an increase in deal value in Q3 2015, as compared to 75 deals worth US$8.3 billion in Q3 2014.

IPOs in the power industry reported an increase in number of deals and a decrease in deal value with nine deals worth US$1.1 billion in Q3 2015, as compared to six deals worth US$3.1 billion in Q2 2015.

Capital raising, through issuance of debt instruments, including public debt offerings and private debt placements, registered a marginal increase in the number of deals and a decrease in deal value with 79 deals worth US$18.4 billion in Q3 2015, as compared to 78 deals worth US$24.6 billion in Q2 2015. On year-on-year basis, debt offerings recorded an increase the number of deals and a decrease in deal value in Q3 2015, compared to 67 deals worth US$21.7 billion in Q3 2014.

Venture Capital Investments Decreased In Q3 2015

Venture capital financing in the power industry registered an increase in the number of deals and a decrease in deal value in Q3 2015 with 27 deals worth U$229.7m, as compared to 25 deals worth US$288.9m in Q2 2015. On year-on-year basis, venture financing deals recorded a decrease in the number of deals deal value with 36 deals worth US$733.1m in Q3 2014.

Total Energy Ventures made investment in five deals worth US$97m between Q3 2014 and Q3 2015.

Deals In North America Decreased In Q3 2015

North America registered a decrease in the number of deals and an increase in deal value with 250 deals worth US$83.6 billion in Q3 2015, as compared to 262 deals worth US$60.9 billion in Q2 2015. On year-on-year basis, the number of deals registered an increase in number and a decrease in deal value in Q3 2015, as compared to 3286 deals worth US$55.2 billion in Q3 2014.

Europe registered a decrease in the number of deals and an increase in deal value with 158 deals worth US$23.6 billion in Q3 2015, as compared to 169 deals worth US$16.3 billion in Q2 2015. On year-on-year basis, the number of deals and deal value registered a decrease Q3 2015, as compared to 221 deals worth US$27 billion in Q3 2014.

Asia-Pacific registered a decrease in the number of deals and an increase in deal value with 185 deals worth US$70.1 billion in Q3 2015, as compared to 190 deals worth US$42.3 billion in Q2 2015. On year-on-year basis, the number of deals registered a decrease in the number of deals and an increase in deal value in Q3 2015, as compared to 231 deals worth US$44.2 billion in Q3 2014.

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