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Canadian investors did just fine in Q2

Staff Writer | October 3, 2017
Canadian investors kept up the momentum in Q2 2017 as they continued to be active in the North American power and utilities deal market. Canadian players were involved in 4 of the top 10 deals (Fortis, Capital Power, Algonquin Power and PSP Investments).
Canadian investors
Canada   10 deals
The largest Canadian deal of the quarter was the second largest in North America: Fortis’s $878 million (CA$1.2 billion) acquisition of a two-thirds interest in Teck’s Waneta hydroelectric generating station.

The deal included signing a 20-year power purchase agreement to power Teck’s nearby industrial operations.

Across North America, in Q2 2017, while a decline in total deal value from Q1 2017 and Q2 2016 was shown, consistent themes continued to resonate as deal makers sought infrastructure transactions and yield. This was highlighted in the largest deal of the quarter: a water utility transaction.

Inbound interest, particularly from Canadian investors, as well as continued strong renewable activity were also highlighted in Q2 2017.

Like in the first quarter of this year, strategic deals continued to generate the largest share of deal value, with $4.4 billion, or 68% of total deal value.

Consolidation has been a key industry trend in recent years, and so small- and mid-cap utilities remain potential acquisition targets.