Big Money Moves In Global New Energy

Global decarbonization goals drive renewables M&A

February 23, 2022 (White and Case)

“…[D]ealmaking within the global energy sector reached new heights in 2021. A total of 973 [mergers and acquisitions] were announced over the course of the year—the highest annual total on record. An annual deal value of US$218.8 billion, meanwhile, was second only to 2007’s US$247.7 billion and follows two consecutive annual increases…[C]ompanies engaged in the production and distribution of renewable energy sources have become hot properties. M&A has become a crucial tool for companies looking to gain market share in this ever-expanding industry…

click to enlarge

Among the largest renewables transactions in 2021 was US-based energy firm Avangrid’s issue of US$4 billion of stock in a private placement to new investor Qatar Investment Authority (QIA) and existing majority shareholder Iberdrola, a Spanish energy firm. Avangrid is a sustainable energy company with both natural gas and renewables assets, and is the third-largest wind operator in the US…

click to enlarge

The high-growth potential of the sector has drawn interest from infrastructure investment funds across the globe…India’s renewables sector is set for rapid growth in 2022, with ambitious government decarbonization targets driving investment in the sector…In a bid to expand into Spain’s high-growth renewables market, French utility giant Engie teamed up with insurance firm Credit Agricole Assurances [in a US$2.3 billion acquisition of] Eolia Renovables…Renewable energy firms, particularly wind and solar, were hotly sought after in 2021 as the pressure to meet decarbonization goals ramped up across the globe…” click here for more

click to enlarge

Tweet