Top five deals per region in Q2 2019
Americas
Announcement date | Target | Target country/ bidder country |
Bidder | Deal value (US$b) | Bidder rationale | Segment |
3 June |
El Paso Electric Co. |
US |
J.P. Morgan Investment Management Inc. |
4.3 | Aligns with J.P. Morgan’s strategy to invest in utilities with high-growth potential to increase the value of their investor funds |
Integrated |
24 June |
Alberta PowerLine Limited |
Canada |
Greystone Managed Investments, Inc.; IST Investmentstiftung |
1.3 | Helps bidders secure long-term stable cash flows |
Integrated |
24 April |
Duke Energy Renewables, LLC |
US |
John Hancock Life Insurance Company, Inc.; John Hancock Infrastructure Fund, GP |
1.3 | Supports bidders’ strategy to invest in renewable energy assets |
Renewables |
14 May |
Mesquite Disposals Unlimited, LLC |
US | NGL Energy Partners LP |
0.9 | Makes NGL the largest water transportation and disposal company in the Delaware Basin |
Water and wastewater |
29 April |
Goreway Power Station |
Canada | Capital Power Corporation |
0.8 | Furthers Capital Power’s growth strategy, Goreway’s location in the Greater Toronto Area load center also provides transportation flexibility |
Generation |
Note: All deals are announced deals, and the values indicated are disclosed enterprise values comprised of equity and debt components.
Europe
Announcement date | Target | Target country/ bidder country |
Bidder | Deal value (US$b) | Bidder rationale | Segment |
29 April |
Innogy Grid Holding (50.04% stake) |
Czech Republic/Australia |
Consortium led by Macquarie Infrastructure and Real Assets |
2.1 | Gives bidders 100% ownership of the asset |
Gas distribution |
5 April |
Alpiq Holding Ltd. (37.12% stake) |
Switzerland/Switzerland |
Consortium led by CSA Energy Infrastructure Switzerland |
1.6 | Aligns with bidder’s strategy of growth while ensuring stable and diversified power supply to its customers |
Integrated |
23 April |
EDP Renovaveis, S.A. (23 onshore wind farms in France, Spain, Belgium and Portugal) |
France/US |
J.P. Morgan Asset Management |
0.9 | Enables J.P. Morgan to deliver stable risk-adjusted returns to investors while continuing to grow its renewable energy portfolio |
Renewables |
3 June |
Ascendant Group Limited |
Bermuda/UK |
Algonquin Power & Utilities Corp. |
0.5 | Supports Algonquin’s international expansion strategy to grow via investing in regulated businesses |
Integrated |
20 June |
CEZ Bulgaria EAD |
Bulgaria/Bulgaria |
Eurohold Bulgaria AD |
0.4 | Part of Eurohold’s long-term strategy to penetrate new regulated business segments that provide large opportunities for growth |
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 |
28 March | China Power Clean Energy Development Co. Ltd. (73.58% stake) |
Greater China/Greater China |
China Power International Holding Limited |
2.9 | Aligns with bidder’s strategy to expand its renewables portfolio and delist the target company from the Hong Kong Stock Exchange |
Renewables |
1 March | Ayana Renewable Power Private Limited |
India/UK | CDC Group plc; National Investment and Infrastructure Fund (NIIF); EverSource Capital Group |
0.3 | Furthers bidders’ strategy to expand into India’s renewable energy market |
Renewables |
22 February | Youngduk Wind Power Co., Ltd.; Yeong Yang Wind Power Corporation |
South Korea/ South Korea | SAMTAN Co., Ltd.; Shinhan Alternative Investment Management Inc. |
0.2 | Supports investors’ plans to expand into wind energy |
Renewables |
7 March | Qinhuangdao Qinre Electric Power Co., Ltd. (40% stake); Hebei Zhanghewan Storage Power Generation Co., Ltd. (45% stake) |
Greater China/ Greater China | Jointo Energy Investment Co., Ltd. Hebei |
0.2 | Enables bidder to consolidate market share and enhance power generation capacity |
Generation |
20 March | TBEA Xinjiang New Energy Co., Ltd. (15.02% stake) |
Greater China/ Greater China | Bank of Communications Financial Asset Investment Co., Ltd. |
0.1 | Improves the financing capacities of Xinjiang and supports the development and operation of wind and solar projects |
Renewables |
Note: All deals are announced deals, and the values indicated are disclosed enterprise values comprised of equity and debt components.
Summary
Utilities M&A increased in Q2, with deals driven by financial investors chasing integrated assets. But, as investment in emerging technologies becomes critical to the energy transition, an influx of venture capital funds is disrupting traditional investment models and reshaping utilities M&A.