Power Deals Annual Review 2008

January 09

2008 was the year in which power deal values came down from their record-breaking highs of the two preceding years as the financial crisis and a number of market uncertainties had a negative impact on deal activity.

Nonetheless, total deal numbers leapt by 24% as companies concentrated on smaller deals and took advantage of new opportunities that arose in the changed market conditions.

Europe was least affected by the downturn in deal values and accounted for over half of all bidder and target power deal value. In contrast, power deals in Australia, which had previously been a main motor of growing M&A activity in the Asia Pacific region, virtually stalled as uncertainty over new carbon emission policies combined with the financial crisis to deter deal flow. In North America, like Europe, big deals were fewer but underlying deal activity was comparable with previous years.