Top five deals per region in 2018
Americas
Announcement date | Target | Target country/bidder country | Bidder | Deal value (US$b) | Bidder rationale | Segment |
August/September | Enbridge Energy Partners LP (66.06% stake); Enbridge Energy Management, L.L.C. (88.33% stake); Spectra Energy Partners, LP (16.89% stake) | US/Canada | Enbridge Inc. | 18.3 | Helps streamline bidder’s corporate and capital structures, improve its credit rating and mitigate impacts associated with regulatory changes that will impact the cash flows of master limited partnerships (MLPs) | Gas utility |
3 January | SCANA Corporation | US/US | Dominion Energy Inc. | 14.3 | Expands Dominion’s presence in the Southeast; increases its compounded annual earnings-per-share target growth rate to 8% through 2020 and reduces customer bills through refunds of US$1.3b | Integrated |
23 April | Vectren Corporation | US/US | CenterPoint Energy Inc. | 8.1 | Leverages growing financial resources to expand competitive energy services across a larger US footprint with a view to also improve customer service levels | Integrated |
21 May | Gulf Power Company | US/US | NextEra Energy Inc. | 5.8 | Improves NextEra’s financial position and expands its customer base by 450,000 customers | Integrated |
16 February | Enel Generación Chile (40.02% stake) | Chile/Chile | Enel Chile S.A. | 3.3 | Aligns with Enel Chile’s strategy to consolidate the Chilean energy companies of majority shareholder Enel S.p.A and strengthen its leadership of Chile’s energy market | Generation: hydro, wind, thermal |
Note: All deals are announced deals, and the values indicated are disclosed enterprise values comprised of equity and debt components.
Europe
Announcement date | Target | Target country/bidder country | Bidder | Deal value (US$b) | Bidder rationale | Segment |
12 March | Innogy SE | Germany/Germany | E.ON SE | 46.6 | Supports E.ON’s strategy to rationalize its portfolio and focus on energy networks and retail customer solutions | Integrated |
11 May | Energias de Portugal S.A. (76.73% stake) | Portugal/China | China Three Gorges Corporation | 27.4 | Aligns with CTG’s plan to make strategic investments in the European energy market | Integrated |
26 July | Hornsea 1 (50% stake) | UK/US | Global Infrastructure Partners (GIP) | 5.9 | Aligns with GIP’s strategy of acquiring stakes in under-construction renewable assets with a focus on long-term returns | Renewables: wind |
25 May | Techem GmbH | Germany/Switzerland | Caisse de Depot et Placement du Quebec; Ontario Teachers' Pension Plan; Partners Group Holding AG | 5.4 | Consortium plans to assist Techem to introduce new technologies and geographically expand its energy invoicing and energy management offerings | Others: energy services |
22 February | Gas Natural Fenosa (20.07% stake) |
Spain/UK | CVC Capital Partners Limited; Corporacion Financiera Alba SA | 4.7 | Aligns with the investors’ strategy of investing in assets with long-term stable returns | Integrated |
Note: All deals are announced deals, and the values indicated are disclosed enterprise values comprised of equity and debt components.
Asia-Pacific
Announcement date | Target | Target country/bidder country | Bidder | Deal value (US$b) | Bidder rationale | Segment |
20 June | Glow Energy Public Co. Ltd. | Thailand/Thailand | Global Power Synergy Public Company Limited | 5.2 | Allows Global Power Synergy to benefit from Glow’s high-quality generation assets, leverage potential business opportunities and increase market presence in Thailand | Generation |
1 March | GD Power Development Co., Ltd. (22 subsidiaries); China Shenhua Energy Company Limited (18 subsidiaries) | China/China | GD Power Development Co. Ltd./China Shenhua Energy Company Limited Joint Venture | 4.4 | Joint venture is in line with the strategies of GD Power Development and China Shenhua Energy to reduce competition and improve core competitiveness | Generation: coal |
2 April | Ostro Energy Pvt. Ltd. | India/India | ReNew Power Ventures | 1.7 | Enables ReNew Power to increase its installed capacity and consolidate its position in India’s renewable energy market | Renewables: wind |
20 September | Energy Development Corporation (EDC) (10.89% stake) | Philippines/Philippines | EDC | 1.3 | Delists EDC, giving the organization greater corporate flexibility and allowing it to offer shareholders a premium to the current share price | Renewables: geothermal |
4 June | Orange Renewable Power Pvt. Ltd.; Chengdu Jinqiang Water Co., Ltd. (60% stake); Jiangyin Tianli Gas Co., Ltd. (37.23% stake) Chengdu Jinqiang Water Co., Ltd. (60% stake); Jiangyin Tianli Gas Co., Ltd. (37.23% stake) Jiangyin Tianli Gas Co., Ltd. (37.23% stake) | India/India | Greenko Energy | 0.9 | Helps Greenko increase its installed capacity with 907 MW of solar and wind projects and 500 MW of assets under development | Renewables: solar and wind |
Note: All deals are announced deals, and the values indicated are disclosed enterprise values comprised of equity and debt components.
Summary
Power & utilities M&A hit a record high of US$256.3b in 2018, driven largely by a European rebound. But deteriorating conditions may create a more complex investment environment in 2019.