|June 15, 2011|
Fukushima disaster helps spark upsets in the renewable energy sector
renewable energy space is expected to see a high level of M&A
activity in the next 12 months, according to a new report published
by mergermarket, in association with Rödl &
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.
Roughly 67% of respondents expect Europe to be at the forefront of this increase, forecasting the region will see significant activity.
Dr. Marcus Felsner, Rödl & Partner Nuremberg, noted that "The renewables industry has established itself as a major pillar of global economic growth. Given the dynamic of events earlier this year, the commercial, political and social drive for fossil fuel independence has only further empowered investors, big and small. High transaction activity in this promising sector - both in developed and emerging markets - is poised to continue well into the future."
This is attributed by some respondents to Europe's variety of resources, with one respondent noting that: "Europe has a great diversity: The Nordics are great for wind power; Italy, Spain and Greece for solar; and continental Europe for geothermal and biomass."
The long-term feed-in tariffs introduced by Germany are also highlighted as an important aid in bolstering renewable energy investment.
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).
Additional findings in the report include: