WORLD NEW ENERGY DEALERS SEE DEALS COMING

M&A activity in the Renewable Energy sector is set to increase, with Europe predicted to see the most significant activity
June 9, 2011 (World of Renewables)

"The renewable energy space is expected to see a high level of M&A activity in the next 12 months, according to [M&A In Renewable Energy; Global Outlook] published by mergermarket, in association with Rödl & Partner… conducted in Q2 2011 of 100 senior M&A practitioners involved in the renewable energy sector…72% expect an increase in renewable energy M&A activity…

"67% of respondents expect Europe to be at the forefront of this increase…[because of] Europe’s variety of resources…The long-term feed-in tariffs introduced by Germany are also highlighted as an important aid in bolstering renewable energy investment."

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"The renewable sector globally has seen 51 deals at a total value of €10.6bn this year-to-date. Iberdrola’s pending 20% stake bid for Iberdrola Renovables SA is the biggest deal of the year at €2.6bn, followed by Electricite de France SA’s €1.5bn bid for EDF Energies Nouvelles SA (50% stake)…

"…A number of respondents commented on the recent Fukushima disaster, believing it will prompt a movement towards rethinking nuclear energy, making the renewable energy sector an attractive alternative… 44% [believe the revolutions in North Africa will have an impact on renewables] and 41% [believe] that it will not…"

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"… 67% say that emerging markets are very important in the context of M&A activity in the renewable energy space…The wind power and solar thermal niches are expected to see bustling M&A over next year, while biomass gains greater prominence…Respondents deem SPVs as an ever more attractive option for acquisitions, while interest in classical share deals wanes…

"…72% believe government support will be a very significant external driver of M&A activity in the renewable energy sector over the coming year…31% believe feed-in tariffs constitute the most effective government policy for driving investment in the renewable energy sector."