Global power sector M&A deals worth $174.4 billion: PwC

Mergers and acquisition deals in the power sector registered a combined worth of $174.4 billion globally in 2011, a 16 per cent growth vis-a-vis the previous year, according to a report.

The PricewaterhouseCoopers' annual review of M&A deals in the global power sector said the total deal value in the power sector was up 16 per cent from $150.5 billion in 2010 at $174.4 billion in 2011.

The number of deals were down at 583 in 2011 from 670 in the preceding year.

According to the report the value of the deals was boosted by the strong performance in the US and Asia-Pacific region.
 
Among various reasons cited for consolidation in the sector include companies looking at gaining a larger presence in growth markets and strong international interest in infrastructure assets.

Deal activity in the Americas surged in 2011, contributing $58 billion to total M&A activity.

Meanwhile, bidders from Asia-Pacific were involved in $14.1 billion worth of deals last year, with Asia-Pacific entities, in addition, accounting for the largest number of deals during the year, with a total of 156 transactions.