A recently released report by Mergermarket, focusing on the Asia-Pacific’s mergers and acquisitions (M&A) market for alternative energy has found that 2017 showed a decline in total deal value for alternative energy deals, although the total number of deals remained flat.
In the Asia-Pacific region (from the 2015-2018 reporting period), China completed the most alternative energy deals of all countries within the region and gained the most value (US$M 36,873) from their mergers and acquisitions over the reporting period. China finalised a total of 165 deals, with Solar (US$ 14,563M) and Hydro Energy (US$ 15,917M) being their most active sectors.
Australia came in second on the list of top Asia-Pacific countries completing high-value alternative energy M&As. The total value came in at (US$ 10,671M) and was counted as having 36 deals, with the most active sectors being Wind US$ 3,098M) and Hydro (US$71,32M). India followed close behind, with a total M&A value of US$9,616M and produced a deal count of 82. The country’s most active sectors were Solar (US$ 5,955M) and Wind (US$2,729M).
Australia also completed the largest value renewable energy M&A deal in the region. On 2 March 2018, the Australian Federal Government made a historic deal when it acquired the stakes of the New South Wales and Victorian governments in Snowy Hydro Limited. The deal is said to deliver more than AU$6 billion in Commonwealth funds for investments in infrastructure across both states. The deal was valued at US$ 4,833M. More information on this deal can be found here.
Lastly, the report also listed a brief M&A overview of all alternative energy subsectors in the Asia-Pacific from 2015-YTD 2018, the results are listed below:
- Solar: Value – US$ 25,530 M, with 220 deals made.
- Wind: Value – US$ 8,057 M, with 70 deals made.
- Hydro: Value – US$ 24,695 M, with 28 deals made.
- Biomass: Value – US$ 1,016 M, with 24 deals made.
- Geothermal: Value – US$ 8,289 M, with 27 deals made.