Investments In The Alternative Energy Industry

Alternative Energy Quarterly Deals Analysis
 
 Decreased Deal Activity In The Alternative Energy Market In Q4 2009
 This report is an essential source of data and trend analysis on the Mergers and Acquisitions (M&A) and financing in the alternative energy market. The report provides detailed information on M&A, Equity/Debt Offerings, Private Equity, Venture Financing and Partnership transactions registered in the alternative energy industry in Q4 2009. The report portrays detailed comparative data on the number of deals and their value in the last five quarters subdivided by deal types, segments, and geographies. Additionally, the report provides information on the top private equity, venture capital, and advisory firms in the alternative energy industry. Data presented in this report is derived from proprietary in-house Alternative Energy eTrack deals database and primary and secondary research. ( http://www.bharatbook.com/detail.asp?id=125858&rt=Alternative-Energy-Quarterly-Deals-Analysis.html )
 
 Investments In The Alternative Energy Industry Declined By 34% In Q4 2009
 Investments in the alternative energy industry continued to decline in Q4 2009, as the global credit freeze created a difficult operating environment for companies to survive in the market. Investments in the market decreased by 34% from $187.3 billion in Q3 2009 to $123.1 billion in Q4 2009. The number of deals also decreased from 800 deals in Q3 2009 to 729 deals in Q4 2009. On a year-on-year basis, the number of deals in the alternative energy market fell by 24% with 729 deals in Q4 2009 compared to 903 deals in Q4 2008, and the investment level remained standstill, reporting merely $123.1 billion in 2009 compared $121.8 billion in 2008. This can be attributed to the global credit crunch that had created havoc of problems for existing as well as new start up companies for the survival in the market.  Though overall Q4 2009 investments represented a slight disappointing ending to the year, it expects that the market will improve as industry players will begin to seek opportunities for consolidation in light of the expected economic recovery in the near future. The ease of financing and Government grants will also uplift the alternative energy industry.
 
 Mergers & Acquisitions Increased In The Alternative Energy Market, While Asset Financing Decreased In Q4 2009
 Mergers and acquisitions in the alternative energy industry witnessed a huge increase in investments to reach $20.8 billion from 101 deals in Q4 2009, compared to $3.6 billion from 74 deals in Q3 2009. This increase can be attributed to three big ticket deals: Alstom and Schneider’s proposed acquisition of Areva T&D for $5.8 billion; Stanley’s proposed merger with Black & Decker for $4.5 billion; and the Panasonic’s acquisition of 50.2% stake in Sanyo Electric for $4.5 billion. Leaving these three deals into consideration, the overall M&A activity is still looked as a pressure driven, attributing to the big problem of reserves and financing issues in the tumbling market. On a high note, majority of the companies are still cautious in this capital intensive market. Overall, M&A activity has seen a good movement in wind energy sector with investments of $2.2 billion from 23 deals in Q4 2009. Companies with strong balance sheets and institutional investors’ boosted confidence had led to a continuous increase in investments, as investors are not exposed to unpredictable fuel and carbon prices.
 
 Asset financing, including project financing, self funded, tax equity, lease and bond financing, and bridge loans for new build, acquisition, and refinancing of assets, registered a decrease in the number of deals and deal value, reporting 348 deals worth $67.3 billion in Q4 2009, compared to 406 deals worth $110.4 billion in Q3 2009, a decrease of 39% in terms of deal value. Solar Trust of America’s proposed project financing of $6 billion for Solar Thermal Power Plants in US, was the prominent financing in Q4 2009. Technology wise, Hydro energy market accounted for 33% of the total new investments in projects in Q4 2009. Hydro-Quebec’s announcement for the acquisition of hydro power stations from Energie NB Power for $4.7 billion and Government of Armenia and Government of Iran’s plan to invest $2.4 billion in Meghri hydro power plant were some of the major deals recorded in Q4 2009.
 
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