Report: EMU Deal Activity Shifting Toward Power, Utilities

Energy, mining and utilities deals have long been dominated by oil and gas transactions, but now they appear to be moving closer toward the power and utilities space.

While global Energy, Mining and Utilities (EMU) deal activity was down for the first quarter of 2018, power and utilities activity is on the rise, according to a recent report released by Mergermarket, an Acuris Company.

While the U.S. has tended to favor policies benefiting shale oil, natural gas and coal, the rest of the world has been investing more heavily in renewables – such as solar, wind and geothermal.

Globally, for 1Q 2018, there were $170.3 billion worth of EMU deals, which represents 19 percent of M&A across all sectors by value. This is a decrease from 24 percent in 1Q 2017, but a slight increase from 17 percent for the whole of 2017.

Further analysis from the report shows:

  • Despite a shift toward electricity generation and transmission M&A, oil and gas deals helped round out most of EMU’s top transactions in 1Q 2018
  • WTI crude hit its highest price of around $66 during 1Q 2018; more oil and gas assets that had been waiting for the proper price environment may come to market
  • On the horizon, renewable energy might be the way consumers choose to power their lives (ex. Norway’s Statoil rebranded itself, submitting a proposal to be renamed ‘Equinor’ to “reflect ongoing changes and support the always safe, high value and low carbon strategy” the company outlined in 2017)

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