Renewable Energy Update : Second Quarter 2011
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 confirmed in Q2’11 the resurgence of the activity observed in Q1’11: Mergermarket reported 32 renewable energy deals in Europe for Q2’11 compared to 35 deals for Q1’11. Total disclosed deal value was €8.38 billion for Q2’11, compared to €4.83 billion for Q1’11.
Deal flow does not appear to be a sufficient stimulant for the NEX, stock quotes of wind and solar companies have significantly decreased in Q2’11, the NEX reaching its lowest level since the beginning of the year 2011. In the same period, by contrast, DJ Euro Stoxx 50 has remained relatively flat on average. The decrease is on one hand to be analyzed in relation with the temporary considerable rise observed in Q1’11 after the Japanese nuclear incident but on the other hand is more generally explained by a general trend in European government subsidy’s policy.
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