High level of M&A activity in the next 12 months, according to report published by mergermarket, in association with Roedl & Partner.
The renewable energy space is expected to see a high level of M&A activity in the next 12 months, according to the second annual report release of M&A in Renewables: Global Outlook, published by mergermarket, in association with Roedl & Partner.
In a survey 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. This bullish sentiment could be attributed to a number of factors, including the devastating effects of the Fukushima disaster.
67% of respondents expect Europe to be at the forefront of this increase, forecasting that the region will see significant activity.
The renewable sector globally has seen 51 deals at a total value of € 10.6bn this year-to-date.
Additional findings in the report include:
- Respondents are split with regards to what impact the revolutions in North Africa will have on the renewable energy sector, with 44% believing that it will have an impact and 41% believing that it will not. A small percentage of respondents remain uncertain;
- More than two-thirds of respondents (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;
- Nearly three-quarters of the survey pool (72%) believe government support will be a very significant external driver of M&A activity in the renewable energy sector over the coming year;
- Nearly one-third of respondents (31%) believe feed-in tariffs constitute the most effective government policy for driving investment in the renewable energy sector.
Please click here to view the full M&A in Renewables: Global Outlook report.
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