Renewable Energy Update : First Quarter 2012
Deloitte Financial Advisory Services
This quarter’s Renewable Energy Update, produced by Deloitte Financial Advisory Services, summarizes the most recent transactions along with information on the most active buyers, current transaction valuation multiples and an overview of the public market’s perception of the industry.
This quarter’s highlights
M&A activity in the renewable energy market has remained stable in Q1’12: Mergermarket reported 27 main renewable energy deals in Europe for Q1’12 which is in line with the number of deals in Q4’11. Total disclosed deal value was €5.33 billion for Q1’12, compared to €4.75 billion for Q4’11.
Stock quotes of the NEX (New Energy Global Innovation Index) started recovering in Oct’11, but plunged again since mid-Nov’11despite a short rise at the beginning of the year until mid-Feb’12. As at May 23, 2012, the NEX reached its lowest level at US$ 111.85 eroding more than 75% of its all-time high value of US$ 468.75 reached on 8 November 2007
Although the Clean Energy sector indices in Europe recovered somewhat at year-end and in early FY12, the solar manufacturing industry keeps being affected by the decrease in feed-in tariffs from several governments for solar power, the lower production cost from Chinese manufacturers and highly aggressive subsidy policy by the Chinese government granting very low interest rate credit facilities to the industrial solar manufacturers.
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