Frankfurt, Germany (UPI) Feb 23, 2011
Consolidation in the global power and gas sector sped up last year thanks to an increase in deals in the United States and stabilization in Europe, a new study suggests.
The volume of mergers and acquisitions in 2010 rose to $116 billion, a 19 percent increase from the previous year, auditors PricewaterhouseCoopers said in a power deals study released Wednesday.
PwC said it expects this trend to continue this year.
"The reaction to date of U.S. regulators to the 2010 announced deals suggests that the door is now more open to a greater flow of regulated utility deals in the United States as companies scale up to deliver renewal and expansion programs," PwC wrote in the study. "Leading European companies will be weighing up moves to step up their international presence in growth markets. We also expect to see a continuation of outbound Chinese and Asia Pacific investment in Europe, the United States and other regions in 2011."
The deal volume in the power sector, excluding renewable, increased 17 percent to $103.7 billion, while the volume of transactions in the gas sector jumped 43 percent to $12.3 billion, PwC said. This comes after a quiet 2009 that was dominated by falling energy demand due to the economic crisis.
The revival was due mainly to a flurry of national deals, which made up 70 percent of the transaction volumes, PwC said.
Transactions targeting the U.S. energy sector dominated last year, with sales volumes there more than doubling from $12.3 billion in 2009 to $32.8 billion last year.
"Especially in the United States, utilities merged," Manfred Wiegand, a PwC partner and one of the key authors of the report, said in a statement e-mailed to reporters. "For this year, we expect more international transactions that will mainly feature Asian investors as buyers."
The M&A business in Europe remained relatively stable in 2010.
The sector was dominated by mainly smaller deals with three exceptions: The purchase by the German state of Baden-Wuerttemberg of French utility EDF's share in German utility EnBW, EDF's sale of its British network assets and French energy giant GDF Suez's takeover of International Power from Britain, which at $13.5 billion was the largest announced deal in the world in 2010.
"Many European energy companies have slimmed down their portfolio to use the gained cash to expand in new business fields or growth markets," Wiegand said.
The study focuses on traditional power and gas sources and excludes renewables, another major growth sector in the global energy industry.
Share This Article With Planet Earth
Vietnam to hike electricity prices
Hanoi, Vietnam (UPI) Feb 23, 2011
Vietnam's electricity prices will increase by 15 percent beginning in March, Viet Nam News reports. The government's announcement this week comes as Vietnam aims to fight inflation, which rose to 12.2 percent in January, nearly a two-year high. Vietnamese Deputy Minister of Industry and Trade Hoang Quoc Vuong said the decision was made after considering rising production costs, t ... read more
Germany's RWE sees tough years ahead|
Energy sector deals to increase, PwC says
S.Korea, China firms in Vietnam power deal
US issues cheaper boiler rules
Argentina to drill for oil near Falklands
Russia may send French-built warship to Kurils
China's CNPC says Libya facilities attacked
British PM sorry as frigate, planes begin Libya evacuation
Eon to build fifth U.K. offshore wind farm
GL Garrad Hassan Launches Onshore Wind Resource Mapping For UK
Construction Begins On Dempsey Ridge Wind Project
India's Suzlon wins $1.28 bn wind power deal
Solar Frontier Starts Production At World's Largest CIS Solar Module Plant
ZenithSolar Signs Landmark Agreement With Chinese Government
DuPont Encapsulant Materials Enable Production, Performance And Cost Advantages
Clear Skies Solar Responds To Rapidly Expanding Market
Enhancing Nuclear Security: Training And International Collaboration
Spent Nuclear Fuel Is Anything But Waste
Saudi, France sign peaceful nuclear cooperation pact
Unrest delay Egypt's nuclear power plant tender
Amyris Technology Performs At Industrial Scale
Posco And LanzaTech To Collaborate On Renewable Energy
Abengoa Consolidates Position As Technological Leader
Joule Unlimited On Track To Beat All Known Biofuel Processes
China Mars probe set for November launch
Shenzhou 8 Mission Could Top Three Weeks
U.S. wary of China space weapons
Slow progress in U.S.-China space efforts
Climate Projections Show Human Health Impacts Possible Within 30 Years
50 million 'environmental refugees' by 2020, experts say
Global warming means longer allergy seasons: study
If Greenhouse Gas Emissions Stopped Now, Earth Still Would Likely Get Warmer
|The content herein, unless otherwise known to be public domain, are Copyright 1995-2010 - SpaceDaily. AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by SpaceDaily on any Web page published or hosted by SpaceDaily. Privacy Statement|