www.pwc.com/powerdeals                              Power &                              Renewables                       ...
2013 deal outlook                          3                                                                              ...
Competition can be intense when the                                                      right opportunities come up for t...
A whole host of developments mean that           the era of cheap US gas cannot be taken           for granted.    2013 de...
Renewables get a boost in                      Supply chain players taking                       Nuclear and thermal gener...
2012 deal flow: M&A lull masks important    shifts    M&A activity in the power sector worldwide enters 2013 in a         ...
Figure 3: Quarterly tracking of deals – 2011 and 2012By value (US$bn)                                                     ...
2012 deal makers: a more diverse buyer    community    The diversity of M&A investment in the power sector is widening    ...
Figure 6: Who’s investing and why? Who                                          Level of activity     What are their aims?...
Gas deals remain prominent                             The most significant gas deals came with                           ...
Methodology                                                 Global Power & Renewables Deals includes analysis of all globa...
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Etude PwC sur le secteur de l’énergie et des énergies renouvelables (2013)


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Selon la nouvelle édition de l’étude mondiale « Power & Renewable deals » de PwC, le montant total des transactions dans le secteur de l’électricité et du gaz s’est élevé à 154 milliards de $ en 2012, diminuant de 27% en valeur et de 15% en volume.

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Etude PwC sur le secteur de l’énergie et des énergies renouvelables (2013)

  1. 1. www.pwc.com/powerdeals Power & Renewables Deals 2013 outlook and 2012 reviewMergers and acquisitionsactivity within the globalpower, utilities andrenewable energy market
  2. 2. 2013 deal outlook 3 2012 deal flow 6 2012 deal makers 8 Contacts 11 Welcome Welcome to our 2013 Power and Renewables Deals outlook. It is the latest in our annual series in which we look at mergers and acquisitions activity in the power and utilities sector. This year for the first time we bring together our previously separate power and renewables deals analysis into one report, reflecting the increasing mainstream role that renewables play in the generation mix. We start the report with a look at some of These contrasts in the sector could provide the main themes that will drive deal the conditions for a revival in deal flow in activity in the year ahead. We see a sector 2013 from the relative low of the previous that has some contrasting dynamics at year. In some key markets, including the play. Many power utility companies in UK and Germany, greater clarity around Europe remain more tilted towards the network regulation and government divestment rather than the acquisition side energy policy will enable investors to have of the deal table. In the US, a number of increased visibility to guide deal decisions. leading players are still in integration On the following pages we highlight the mode following an earlier wave of mega key developments that are likely to deals. characterise 2013 M&A activity in the sector worldwide. We also look at the main In contrast, state-owned enterprises in deal hotspots which provide particular China and trading houses in Japan are deal opportunities. very much in an expansionist mode. Corporate buyer activity has been relatively quiet but M&A investment into the sector from institutions, such as insurance funds and pension funds, is up significantly and now accounts for nearly a third of power and renewables deal value. Norbert Schwieters Andrew McCrosson Rob McCeney Global Power & Utilities Leader Global Power & Utilities Transaction Services Global Power & Utilities Transaction Services2 Power & Renewables Deals 2013 outlook and 2012 review
  3. 3. Competition can be intense when the right opportunities come up for the right size deals.2013 deal outlook: sector contrasts set thescene for deal revivalChinese and Japanese ‘go abroad’ Current uncertainty unlikely to Upturn still lies ahead for bigintent remains strong change Brazil’s long-term appeal deals in the USChinese state-owned power and utilities Brazil remains a key growth and M&A Big deal activity in the US is on the backcompanies will continue to be active in hotspot. It has attracted significant burner with some of the leading playerstheir search for suitable international inbound deal interest, most notably from focused on integrations following a wavepower utility and grid investment State Grid Corporation of China and E.ON of mega deal activity in 2010 and 2011.opportunities. There may be a pause by during 2012. But uncertainties have The timing of any pick-up of large deals insome companies as they concentrate on increased recently. In autumn 2012 the the regulated part of the market will partlybedding down earlier deals. But most are government enacted a plan to reduce be dependent on getting these integrationslikely to remain on high alert for the right energy prices to industry and consumers sufficiently advanced for companies topurchases. Similarly, Japanese trading as one of the conditions of extending have the capacity to return to M&A.houses are busy looking for suitable company 30 year concession agreements, But a big factor will also be the evolvingassets in a range of segments of the which are due to mature in 2017. The move regulatory context for deals. Statemarket, including power generation, has hit the market capitalisations of power regulators have been fairly interventionistwind farms and gas pipelines. There are and utilities companies hard and is in some recent deals and the move to aalso signs that Korean power companies expected to reduce revenues and profits in ‘net benefit’ standard is new territory forare increasing their own ‘go abroad’ the coming years. And the country is also many companies as they seek to balanceambitions. facing a potential supply shortage with low rate pressures with the need for huge rainfall endangering hydropower supplies. capital investment. But these developments, while increasingContinued momentum behind short-term uncertainty, do not alter theinstitutional investment long-term growth fundamentals. Indeed, Bite size deals likely to they may provide a spur to M&A by predominate for corporatesWe anticipate that institutional investor reducing target prices and alsointerest in the sector, such as from pension encouraging long-overdue domestic A common theme for many corporatefunds, insurance funds, mutual funds, consolidation. At present, for example, buyers will be a continued focus on smallsovereign wealth funds and banks, will there are 64 different distribution to medium sized purchases rather thancontinue to strengthen. In Europe, network companies operating in Brazil, making mega acquisitions. This is the case in adeals have been a particular focus for such the market ripe for consolidation. number of markets worldwide. The scalebuyers and continued to attract high of the infrastructure and investmentpremiums. This is in part due to the challenge limits the money that can be putrelatively stable regulatory frameworks, into M&A. But competition can be intensebut also the significant capital expenditure when the right opportunities come uprequirements needed to replace much of for the right size deals that can give goodthe ageing infrastructure in Europe. growth or portfolio fit opportunities.Investors such as institutional buyers with For example, the US$1bn December 2012a low cost of capital are able to finance auction of two gas utilities by Energythis at levels below those allowed by Transfer Equity LP in the US attractedregulators. We think the high premiums very high bidder interest.evident on recent deals will tempt existingasset owners to look closely at theiroptions. Power & Renewables Deals 2013 outlook and 2012 review 3
  4. 4. A whole host of developments mean that the era of cheap US gas cannot be taken for granted. 2013 deal outlook: sector contrasts set the scene for deal revival The heat is increasing for US Big moves afoot in the Australian Major inbound interest in Turkey merchant generation and New Zealand power markets 2013 has begun with news of major Middle The merchant generation sector in the If equity market conditions are right, Eastern investment in the Turkish power US is facing considerable challenges Hong Kong’s China Light and Power (CLP) sector from the Abu Dhabi National Energy which are likely to spur significant M&A is likely to revive its planned IPO of its Company (Taqa), potentially paving the opportunities. These include wholly owned subsidiary EnergyAustralia way for Taqa to also invest in Turkey’s environmental compliance pressures, load (previously known as TRUenergy). nuclear programme. This follows hard on growth considerations and the current The float, worth potentially in excess of E.ON’s announcement of a €1.5bn joint price of natural gas. We expect this to US$3bn, was suspended in late 2012 due venture with Turkish company Enerjisa, result in continued M&A activity in 2013 to uncertain market conditions. Attention highlighting the country’s power sector as merchant companies look to scale and will also be focused on the planned growth attractiveness. balance portfolios, and hybrids look to privatisations of New South Wales focus on core regulated businesses. But generation assets, worth again in excess low gas prices and continued low load of US$3bn. Meanwhile, in New Zealand, Significant renewables deal flow growth mean sellers are facing the the government is looking to the second prospect of low sale prices. Many will hope quarter of 2013 for the first of three state- In Europe, we see the potential for a that liquidity pressures can be withstood owned power company part-privatisations. substantial flow of deals for onshore long enough for the longer term gas price wind generation assets. This follows the outlook to strengthen. Coal generation US$4-5bn of announcements of asset sale faces particular pressure, especially from A privatisation wave is building intentions put forward in the summer environmental regulations. and autumn last year. Two of these deals – As well as the possible privatisations in GDF Suez’s disposal in Italy and Iberdrola’s Australia and New Zealand, sales of in France – found buyers in December. All eyes will be on the new state-owned power assets are also on the But this still leaves a significant number gas environment agenda in the key growth markets of of deals in the pipeline. In the Asia Pacific Mexico, Nigeria and Turkey. Of the three, region, we anticipate a noteworthy level The era of cheap gas in the US has the moves in Turkey are the most certain. of renewable power deals in Australia in transformed valuations and M&A Plans are well advanced for the sale of 2013 in the lead up towards meeting 2020 strategies. But the big M&A prizes in 2013 three state power plants, with the first of targets, and from sales by developers but will go to those with the foresight to these having attracted extensive interest also as retailers sell developed assets. correctly time the eventual upturn in gas with 16 bids. Tenders have also been Interest is high from Chinese and Japanese prices. A whole host of developments opened for four of the five regional investors as well as Australian pension mean that the era of cheap US gas cannot distribution companies still in state hands. funds. be taken for granted. Increased export to There is also expectation of large higher priced markets, a shift from coal to privatisation programmes across parts gas for baseload power generation, home of Central and Eastern Europe. market consumption pressures from industrials and consumers and new uses of gas for transportation fuels and derivative industrial products will all add to upward price pressure. We expect to see a number of moves, particularly from private equity buyers, for currently cheap assets that could gain from a longer term upward gas price trend. A recent rush of announcements of asset sale intentions look set to provide a significant renewables deal flow in 2013.4 Power & Renewables Deals 2013 outlook and 2012 review
  5. 5. Renewables get a boost in Supply chain players taking Nuclear and thermal generationthe US stakes in wind projects supply chain moves afoot2013 has brought a double boost to the We expect to see more instances of The changing landscape in both fossil fuelUS renewables market. As part of the fiscal companies from the wind power supply generation and nuclear power is leadingcliff negotiations at the end of 2012, the chain being active participants in to major realignments among powerproduction tax credit that provides vital windpower M&A. As well as seeing return equipment companies. Already, Hitachiunderpinning for windpower projects was on investment opportunities in windpower and Mitsubishi Heavy Industries haveextended by what is effectively two years projects, equipment company participation announced the combination of theirto get projects operational. The on-off-on brings technology sales opportunities. thermal businesses to give them a betterfuture of the PTC will do little to resolve For example, at the very end of 2012, a footing to compete globally. They mayuncertainty about longer-term support but consortium comprising GE Energy also explore partnerships in other areaseach expiry date brings with it an uptick Financial Services, MEAG – the asset including nuclear. Toshiba has announcedin transactions as market participants look management arm of Munich Re and ERGO its intention to sell part of itsfor opportunities to beat the deadline. – and EDF Energies Nouvelles bought Westinghouse nuclear business. Similarly,In contrast, an important solar power 32 operating French windfarms from it would be no surprise if M&A moves alsofederal policy incentive – the solar Iberdrola. Plans for the portfolio include took place to create synergies with turbineinvestment tax credit – is not due to expire repowering some of the wind farms to manufacturers.until the end of 2016. The solar power improve their efficiency and reliabilitysector received a boost with news that using GE technology. For other projects atWarren Buffet’s MidAmerican Energy earlier stages of development, equipmentHoldings Company is to buy two solar company participation may be importantprojects with a combined generating to ensure the project moves forward.capacity of 579 megawatts from San Jose-based SunPower. The deal is reported tobe worth between US$2-2.5bn and isdescribed by the companies as the world’slargest photovoltaic power development.Figure 1: Global deals outlook and opportunities Generation assets Transmission and distribution Midstream Midstream Onshore wind Transmission growth Renewables Privatisations Mega thermal power projects Solar PV opportunities North Europe America Turkey New South Wales and Queensland network sales NSW Power generation Privatisations Renewables Middle India East Brazil Australia Deals outlook Positive Privatisations (Saudi/Qatar) Transmission growth IPP/IWPP Moderate Renewables GenerationSource: PwC, Power & Renewables Deals Power & Renewables Deals 2013 outlook and 2012 review 5
  6. 6. 2012 deal flow: M&A lull masks important shifts M&A activity in the power sector worldwide enters 2013 in a The result is a shift in M&A focus from relative lull compared to the mega-merger periods of a few years the mature markets of Europe and North America to growth markets elsewhere in ago. Total power and renewables deal numbers in the year just the world. As we enter 2013, the share of ended are down 15% year on year with total deal value down target value in the Asia Pacific region as 27% (figure 2). Deal value has not maintained the upward a proportion of worldwide power and trajectory of 2010 and 2011 that saw it recovering from its renewables M&A value has trebled year 2009 credit crunch low (figure 4). on year (see deal makers). This increase is inflated by some one-offs, notably the But the sector is a major growth market Tokyo Electric Power Company and M&A is playing an important part in nationalisation and follow-up deals, but that alongside project and infrastructure the underlying trend is also indicative of investment. Demand for electricity is set to a longer term shift. grow faster than for any other final form of energy. The vast majority (80%) of such The new ‘gas era’ with the advent of cheap growth is in non-OECD countries. Much of gas in the US and potential new shale and the growth in these countries is coming other gas exploration around the world from capital project and greenfield provides the backdrop to another shift investment rather than M&A. But in some with an 18% increase in the number of gas cases acquisitions are necessary to gain deals. Deals for renewable power targets, presence and precede major investment, like their mainstream power counterparts, such as in E.ON’s US$466m purchase of a were down year on year but they ended minority stake in Brazil’s MPX Energia. 2012 on an upturn. Renewable power deals worth a total of US$7.1bn were announced in the last quarter of the year, the highest for 18 months. Figure 2: All electricity, gas and renewables deals by value (US$bn) – 2011 and 2012 2011 2012 Change in 2012 Number Value Number Value % number % value Total deals 1,195 US$211.4bn 1,014 US$154.1bn (15)% (27)% of which: Electricity 469 US$112.2bn 395 US$87.1bn (16)% (22)% Gas 132 US$73.2bn 156 US$49.1bn 18% (33)% Renewables 594 US$26.0bn 463 US$17.9bn (22)% (31)% Source: PwC, Global Power & Renewables Deals6 Power & Renewables Deals 2013 outlook and 2012 review
  7. 7. Figure 3: Quarterly tracking of deals – 2011 and 2012By value (US$bn) By number Electricity Gas 80 Renewables 400 70.7 355 70 350 62.9 60 59.7 298 57.3 300 274 268 252 260 254 50 250 248 40 39.3 200 30 28.6 28.8 150 20 18.0 100 10 50 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2012 2011 2012Source: PwC, Global Power & Renewables DealsFigure 4: Electricity and gas sector deal activity (US$bn)2012 38 98 136 Crossborder deals Domestic deals2011 49 136 1852010 46 105 1512009 47 51 982008 74 121 1952007 143 230 3732006 136 163 2992005 56 140 1962004 58 66 1242003 17 26 43 0 20 40 60 80 0 0 0 0 0 0 0 0 0 0 0 0 0 0 22 US$bn 10 12 14 16 18 20 24 26 28 30 32 34 36 38Source: PwC, Global Power & Renewables Deals Power & Renewables Deals 2013 outlook and 2012 review 7
  8. 8. 2012 deal makers: a more diverse buyer community The diversity of M&A investment in the power sector is widening The biggest deals worldwide with a much greater share of buyer participation coming from The partial nationalisation of the Tokyo institutions such as insurance funds, pension funds and Electric Power Company (Tepco) headed sovereign wealth funds. While corporate buyers continue to be the list of biggest deals in 2012. Tepco behind the majority of deals, institutions accounted for requires major fundraising for its clean-up, US$44bn of the US$154bn deal value with their share more reconstruction and compensation tasks than doubling year on year (see figure 5). following the impact of the 2011 earthquake and tsunami. The impact of The high level of interest in the sector Tepco on Asia Pacific deal flow did not coming from institutions has added to the stop there. Tepco has been a seller in other longstanding interest from infrastructure deals as it seeks to restructure its balance investors. Together, such buyers have sheet to focus on core tasks, most notably been very active in pursuit of network divesting its 32.5% stake on the sell-side and pipeline assets, most notably in the of the US$3.1bn purchase of Loy Yang A Open Grid Europe deal, where the buy side power station by AGL Energy in Australia. included Abu Dhabi Investment Authority, British Columbia Investment Management In Europe, GDF Suez completed its move Corporation and insurance company to gain outright ownership of International Munich Re and in the Wales and West Power in a US$11.1bn transaction. GDF Utilities deal, bought by Hong Kong-based Suez’s strategic quest to accelerate Cheung Kong Infrastructure Holdings. development in fast growing markets while Figure 6 highlights some of the main optimising and integrating in mature types of buyers active in the sector. markets is a good summary of the strategic rationale for many of Europe’s power and utilities companies as they look to growth outside Europe. Figure 5: Institutional and infrastructure bidder activity (Deal value shown in parenthesis) Source of funds 2011 Source of funds 2012 Corporate 80% (US$169.8bn) Corporate 63% (US$96.5bn) Institution 14% (US$30.1bn) Institution 29% (US$44.3bn) Infrastructure fund 4% (US$9.0bn) Infrastructure fund 5% (US$7.8bn) Other 1% (US$2.6bn) Other 4% (US$5.4bn) Note: Corporate includes energy and power and utility companies; Institution includes pension funds, insurance funds, mutual funds, sovereign wealth funds and banks, etc.; Infrastructure fund includes specialised infrastructure funds and private equity funds; Other comprises sovereign state, market purchase, private investor, non-disclosed acquirers, management buy-out, etc. Source: PwC, Power & Renewables Deals8 Power & Renewables Deals 2013 outlook and 2012 review
  9. 9. Figure 6: Who’s investing and why? Who Level of activity What are their aims? Examples Chinese state-owned enterprises High • Long-term growth State Grid, China Three Gorges • Leveraging supply chain • Funding development Sovereign wealth funds Medium • Long-term strategic investment CIC, ADIA, Mubadala Infrastructure funds High • Stable long-term investment IFM, GIP, Macquarie • Controlling positions preferred • Yield and growth Pension & insurance direct investors Medium/High • Stable long-term investment Canadian Pension Plan Investment Board, (Increasing) • Minority positions acceptable USS, TIACREF, Borealis • Yield and growth Japanese trading houses High • Financial investment and operations Marubeni, Mitsui & Co., Mitsubishi Corp., • Geographic diversification Sumitomo Corp., Itochu Corp. Domestic corporates Medium • Consolidation and synergies AES Corp, AGL Energy Source: PwC, Power & Renewables DealsThe International Power purchase has led by 2020. This indicates plans to invest Divestment and marketto a flow of asset sales by GDF Suez. These US$30-50bn on international expansion changeincluded the two largest renewable power in accordance with the strategic directiondeals of 2012. In the biggest, Japanese outlined in China’s 12th Five-Year Plan. Divestment of non-core assets to enable atrading company Mitsui and Canada-based During 2012, the company made focus on capital projects and acquisitiveinfrastructure investment firm Fiera Axium significant purchases of transmission growth continues to be an importantInfrastructure bought a 60% US$1.2bn networks in Portugal, Brazil and Australia. theme, particularly for Europeanstake in GDF Suez’s 680MW Canadian companies. E.ON’s €3.2bn sale of Openrenewable generation portfolio. This was The theme of outbound investment by Grid Europe was a significant deal in thisfollowed a few weeks later in December Chinese state-owned companies remains respect. It not only represents a milestone2012 with GDF Suez’s US$898m disposal strong. As well as Europe and South in the unbundling of Europe’s powerof a majority stake in IP Maestrale, its America, Australia is a key target area. utilities but is also a major step towards aItalian wind energy subsidiary, to ERG In addition to State Grid, Shenhua Group very changed grid ownership landscape.SpA, an Italian energy group active in subsidary Guohua, was among the buyers Another landmark deal in Europe sawrenewables. for Australian renewable assets in 2012 E.ON and RWE end their Horizon nuclear with the second largest Chino-Australian power joint venture in the UK with a deal – the US$307m purchase of the US$1.1bn sale to Hitachi.International growth Musselroe windfarm which is under construction in northeast Tasmania. The In the US, big deal activity has been largelyIn the Asia Pacific region, the biggest deal flow of wind project sales as developers quiet with a number of key corporatesbesides the Tepco nationalisation also seek to sell on assets or utility companies focused on the regulatory approvals andreflected the need to build capital for rationalise their portfolios is a major part integrations necessary to deliver valueinternational growth. The US$7.9bn of deal flow in Australia but also in Europe following a series of mega deals in 2011.divestiture by State Grid Corporation of and North America. Indeed, the largest US deal was aChina of coal and power generation assets divestment by Kinder Morgan as part ofto Shenhua Group responds to the Chinese its moves to gain clearance for its 2010government’s decision to unbundle and 2011 US$21bn purchase of El Paso.generation from grid business and comes In total, North American bidder andas State Grid aims to increase its overseas target activity fell 75%, from US$113bnbased assets to 10% of its overall business to US$27bn in the case of targets.Figure 7: Top five – power deals 2012 No. Value of Date Target name Target nation Acquirer name Acquirer nation transaction announced (US$bn) 1 12.5 09 May 12 Tokyo Electric Power Co Inc (Majority%) Japan Government of Japan Japan 2 11.1 29 Mar 12 International Power plc (30.3216%) United Kingdom GDF Suez SA France 3 7.9 15 Aug 12 State Grid Energy Development Co Ltd China Shenhua Group Corp Ltd China 4 6.2 06 Aug 12 Tennessee Gas Pipeline Company LLC; United States Kinder Morgan Energy Partners LP United States El Paso Natural Gas Co 5 4.4 30 May 12 SNAM SpA (30%) Italy Cassa Depositi e Prestiti SpA Italy Source: PwC, Power & Renewables Deals Power & Renewables Deals 2013 outlook and 2012 review 9
  10. 10. Gas deals remain prominent The most significant gas deals came with the Kinder Morgan divestments and a trio With mega deals on the back burner, of gas network and pipeline deals in North American deal activity has been Europe. These included the purchase of mostly confined to smaller transactions, gas transportation, distribution and meter Canadian investment into the US, and services company Wales and West Utilities sales of orphan assets. Gas continues to by Hong Kong’s Cheung Kong Holdings, be a key focus for deals. In the US, the disposal of Enis gas transmission investment in midstream gas gathering operator Snam and E.ON’s sale of Open and transportation pipelines has the Grid Europe. potential of giving power utility companies opportunities to get returns outside of their regulated asset base. Figure 8: Top five – renewables deals 2012 No. Value of Date Target name Target nation Acquirer name Acquirer nation transaction announced (US$m) 1 1,217 17 Dec 12 Power station (Wind and solar power portfolio ) Canada Mitsui & Co Ltd (30%/30%); Fiera Axium Japan Infrastructure 2 898 05 Dec 12 IP Maestrale Investments Ltd (80%) United Kingdom ERG SpA Italy 3 888 09 Mar 12 Power station (four 480MW wind power stations) United States Algonquin Power & Utilities Corp Canada 4 760 21 Dec 12 Power station (19 Hydroelectric facilities) United States Brookfield Asset Management Inc Canada 5 600 29 Jun 12 Alcoa Inc (351MW Tapoca hydroelectric project) United States Brookfield Asset Management Inc Canada Source: PwC, Power & Renewables Deals Figure 9: 2012 deal percentages by continent (2011 percentages shown in parenthesis) Deal number by target Deal number by bidder Europe 37% (35%) Europe 36% (34%) Asia Pacific 23% (24%) Asia Pacific 26% (25%) North America 22% (23%) North America 22% (25%) South & Central America 9% (8%) Russian Federation 8% (10%) Russian Federation 7% (9%) South & Central America 6% (5%) Africa 1% (1%) Middle East 1% (1%) Middle East 1% (0%) Africa 1% (0%) Deal value by target Deal value by bidder Europe 34% (28%) Asia Pacific 33% (10%) North America 28% (54%) North America 30% (61%) Asia Pacific 27% (9%) Europe 29% (20%) South & Central America 8% (6%) South & Central America 6% (3%) Russian Federation 3% (2%) Russian Federation 3% (4%) Middle East 0% (0%) Middle East 0% (2%) Africa 0% (0%) Africa 0% (0%) Source: PwC, Power & Renewables Deals10 Power & Renewables Deals 2013 outlook and 2012 review
  11. 11. Methodology Global Power & Renewables Deals includes analysis of all global power utilities, renewable energy and clean technology deal activity. We include deals involving power generation, transmission and distribution; natural gas transmission, distribution, storage and pipelines; energy retail; and nuclear power assets. Deals involving operations upstream of these activities, including upstream gas exploration and production, are also excluded. Renewable energy deals are defined as those relating to the following sectors: biofuels, biomass, geothermal, hydro, marine, solar and wind. Renewable energy deals relate to the acquisition of (i) operating and construction stage projects involved in the production of renewable energy and (ii) companies manufacturing equipment for the renewables sector. We define clean technology deals as those relating to the acquisition of companies developing energy efficient products for renewable energy infrastructure. The analysis is based on published transactions from the Dealogic ‘M&A Global database’ for all electricity, gas utility and renewables deals. Deals are included at their announcement date when they are partially completed (pending financial and legal closure) or completed. Deal values are the consideration value announced or reported including any assumption of debt and liabilities. Comparative data for prior years and quarters differ to that appearing in previous editions of our analysis or other current year deals publications. This can arise in the case of updated information or methodological refinements and consequent restatement of the input database.PwC firms provide industry-focused assurance, tax and advisoryservices to enhance value for their clients. More than 180,000people in 158 countries in firms across the PwC network sharetheir thinking, experience and solutions to develop freshperspectives and practical advice.The Global Energy, Utilities and Mining group is the professionalservices leader in the international energy, utilities and miningcommunity, advising clients through a global network of fullydedicated specialists.For further information, please visit:www.pwc.com/powerdealsThis publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should notact upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express orimplied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law,PricewaterhouseCoopers does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone elseacting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.© January 2013 PwC. All rights reserved. Not for further distribution without the permission of PwC. “PwC” refers to the network of member firmsof PricewaterhouseCoopers International Limited (PwCIL), or, as the context requires, individual member firms of the PwC network. Each memberfirm is a separate legal entity and does not act as agent of PwCIL or any other member firm. PwCIL does not provide any services to clients.PwCIL is not responsible or liable for the acts or omissions of any of its member firms nor can it control the exercise of their professionaljudgment or bind them in any way. No member firm is responsible or liable for the acts or omissions of any other member firm nor can it controlthe exercise of another member firm’s professional judgment or bind another member firm or PwCIL in any way.