The power and utilities industry has seen a surge of M&A
activity in the first quarter of 2016, according to a recent PWC report. The following highlights reflect an
overall positive start to the year for the power and utilities
Increase in total deal
value. Total deal value for Q1 2016 hit $41.4 billion.
This is up 260% from the previous quarter, where total deal value
was $11.5 billion. Additionally, total deal value is up 508%
compared to this time last year.
Increase in average deal
value. The average value per deal reached $1.9 billion in
Q1 2016, which is an increase of 93% compared to Q1 2015. The first
quarter of 2016 also saw seven deals with a value greater than $1
billion, compared to only two in the previous quarter.
Increase in activity from
strategic buyers. Strategic buyers were increasingly
involved in power and utilities deals this quarter, as they
accounted for 92% of the transactions in Q1 2016. This figure is up
6% from the previous quarter.
Decrease in deals involving
renewable power. The only downward trend identified in the
report was a decline in the number of transactions involving
renewable power. These transactions accounted for 3% of deals by
value in Q1 2016, down from 8% in the previous quarter.
Ultimately, this report showcases the overall upward trends in
M&A activity that the power and utilities industry has seen
since the start of 2016. In particular, it will be interesting to
see whether the large increases in total and average deal value
continue to trend upwards in subsequent quarters, and whether the
decline in deals involving renewable power reflects any broader
concerns (environmental or otherwise).
The author would like to thank Samantha Cass, articling
student, for her assistance in preparing this legal
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Under the Income Tax Act, the Employment Insurance Act, and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions or GST.
Under the Income Tax Act, the Employment Insurance Act, the Canada Pension Plan Act and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions.
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