PwC reports global transaction values climbed 25% to $372.5 billion for the full year, on the back of 768 deals, with:
No clear evidence of a fall-off in deal activity in the latter half of the year when the credit crisis broke. 57% of the deal volume, 441 of the total 768 deals in 2007, occurred in the second half of the year. The fourth quarter of 2007 saw deal value rise 73% above the same period in 2006.
Looking ahead the report predicts that regulatory approvals from state public utility commissions will remain an obstacle for dealmakers. However, a lack of money at the state level to replace aging infrastructure in the U.S. as well as calls for the implementation of renewable energy mandates will be key drivers of M&A activity.
As a matter of fact, a power deal prompted by a regulatory action was just announced. The U.K.'s National Grid plc on Tuesday unveiled a $2.9 billion agreement to sell New York's Ravenswood power plant to TransCanada Corp., meeting a key regulatory condition of its purchase of KeySpan Corp. - George White
See PwC report
