Dealmaking looks set to continue, underpinned by a buoyant economic outlook on the back of the stronger-than-expected economic turnaround in Europe and positive growth in the US and China. As new technologies begin to impact traditional operating models, divestitures will be a critical component for power and utilities companies seeking to realign their portfolios for this new operating environment.
Macroeconomic environment and M&A outlook
P&U respondents expect improving economic conditions to drive deal activity. Executives anticipate an increase in mergers and acquisitions activity, and, as competition for P&U assets heats up, utilities will need to be prepared to act fast and with strategic discipline. Deal scarcity, competition for high-quality assets and increasing inflation are seen as the greatest risks to dealmaking.