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Power and renewables deals hit a new high for the decade

Staff writer |
Global M&A value in the power and renewables sector has reached the highest level seen in the current decade, up 70% year-on-year, according to PwC and Strategy&'s latest annual Power and Renewables Deals report.

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The report states there is plenty of potential in the global power and renewables M&A pipeline but the latest surge may not be indicative of the long-term trend. A more globally-balanced spread of deals is expected in 2015 with fewer of the US mega-deals that buoyed 2014 totals.

But the flow of divestment- and privatisation-driven deals looks strong and so there are plenty of reasons to think any dip in US deal value will be taken up, in part at least, by activity elsewhere.

Total worldwide power and renewables deal value rose from US$143.3bn in 2013 to US$243.1bn in 2014, a 70% increase year-on-year.

It's the first time the total has broken out of the US$100-200bn range established since the pre-credit crisis year of 2007.

A series of big but one-off restructuring deals in the US gas sector, involving Kinder Morgan and Williams, contributed a massive US$92.2bn to the worldwide M&A total.

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