M&A Trends in Power and Utility Sector YTD September 2023

This report outlines the M&A activity in the Power and Utility (P&U) sector for the year-to-date September 2023. It details the impact of geopolitical events, such as the war in Ukraine and the US-China trade war, which have disrupted supply chains and raised financing costs. The report highlights that M&A activity in the P&U industry remained stable with 545 deals totaling USD 56.0 billion, reflecting a 6% decline in deal volume and a 21% decrease in deal value compared to the previous year. The document presents key trends influencing M&A, including the energy transition, technological advancements, and regulatory policies. It emphasizes the growing importance of ESG-related investments, with projections indicating a significant increase in asset managers' ESG-related assets under management. Furthermore, the report discusses the effects of the rate base on M&A activities, noting that a high-rate base can enhance financial stability and provide growth opportunities for acquiring companies. The outlook for the P&U industry suggests a cautious approach to project development in 2024 due to ongoing regulatory and economic challenges.