Rödl & Partner GbR
M&A activity in the Renewable Energy sector is set to increase / Most deals are expected to take the form of strategic acquisitions / Study from Mergermarket and Rödl & Partner
Rödl & Partner GbR / Key word(s): Study/Mergers & Acquisitions M&A activity in the Renewable Energy sector is set to increase / Most deals are expected to take the form of strategic acquisitions / Study from Mergermarket and Rödl & Partner 14 June 2012, London/Munich – The renewable energy space is expected to see a high level of M&A activity in the next 12 months despite changes to government incentive schemes in Europe and regulatory uncertainty in the United States, according to the third edition of M&A in Renewable Energy – Global Outlook 2012. The report, published by Rödl & Partner in association with mergermarket , draws from interviews with 100 renewable energy M&A professionals from the corporate, private equity and investment banking communities to examine the challenges, opportunities and underlying deal drivers in the sector. The wind and photovoltaic (PV) subsectors are expected to experience the most significant M&A activity, and respondents believe both wind and PV will achieve grid parity as early as 2015 or 2016 in Germany, Italy and Spain. As far as specific geographies are concerned, 46% of respondents expect the highest levels of M&A to come from the Asia-Pacific region, followed by Europe and North America. The experts frequently note rising demand and a desire for energy independence as important motivations for renewable energy development in emerging markets. Respondents expect government support (76%) and cash-rich corporate buyers (47%) to be the most significant external drivers of M&A in the next 12 months. The top internal drivers include an acquirers’ appetite for new technology (72%) and their desire to grow market share (62%), followed by attractively low valuations. Recent M&A data shows the renewable energy sector has proved remarkably resilient despite eurozone volatility, constrained bank lending and changes to government incentive programmes. In 2011 the sector saw 210 deals worth EUR25bn, representing a 135% increase in value and a modest 2% increase in volume against 2010. Additional findings in the report include: – 47% of respondents expect special purpose vehicles (SPVs) to be the most widely used deal structure. – Access to financing will present the largest obstacle to dealmaking, say 49% of respondents. – 84% of respondents believe PE buyouts will increase over the coming year in the sector, up from 55% in 2011. – Trade sales will comprise the primary route to exit from PE portfolio companies, say 54% of respondents. Click here to download the full report: www.roedl.de/energie2012
Oliver Schmitt, Rödl & Partner Munich, says:
Georg Abegg, Rödl & Partner Madrid, says:
Roberto Pera, Rödl & Partner Rome, says:
Ulrike Brückner, Rödl & Partner Berlin/Johannesburg, says: For more information please contact:
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