Power Deals - 2012 outlook and 2011 review

Mergers and acquisitions activity within the global utilities and gas markets

This year's Power Deals reports a major shift in global power M&A is taking place. This shift ends a six year long era of European dominance in power deals and confirms the Asia Pacific as a hub of global activity.

For the first time since 1999's inaugural survey, Asia Pacific buyers and sellers were behind the largest number of deals in 2011. Chinese companies are advancing their 'go abroad' strategies and any further softening of valuations in Europe will likely reinforce their interest in the European marketplace, helped by favourable exchange rates.

Australia can expect to continue to be part of this global change, according to PwC Energy Utilities and Mining Industry leader, Mike Happell.

“Whilst the power M&A market in Australia was quiet in 2011, the policy structure is now in place – namely a price on carbon – which has created certainty, and could potentially lead to busier times as the economy seeks to reduce its reliance on carbon and owners of affected plants consider their competitive position in the market."