What slump in M&A?

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Adam Barber
January 16, 2012
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This content is from our archive. Some formatting or links may be broken.
What slump in M&A?

What a difference a year makes.

The European energy market was alive and kicking last week following, what had been for many, a protracted seasonal break.

Repower completed its acquisition of PowerBlades, Fuhrlander acquired a majority stake in W2E Wind to Energy and BP climbed into bed with Sempra, to collaboratively develop a major new wind farm initiative in Kansas.

This combined with a whole string of deals nearing completion (at least, if you believe the city rumour mill) suggests that you’d be forgiven for thinking you’d overslept and woken up twelve months late.

Whatever the case, as the market gallops through January, there’s a renewed sense of optimism in the air and a sense that if wind energy is to truly succeed, then there’s some serious work to be done.

Compare this deal flow with the European M&A market and you start to get a sense for what this really means; since activity within the wider private equity industry remains at an all time low - a vicious circle, perpetuated by investors sitting on their hands as well as their cash.

Perhaps then, the renewables market – and European wind energy in particular – offers the investment community a light at the end of the tunnel?

Quite possibly. After all, the market certainly isn’t averse to welcoming fresh investment and - provided the price is right - there’s still plenty of scope for future innovation and growth.

But that’s not the really interesting thing... Since the real interest comes in the contrasts to be drawn between the state of the North American and European marketplace.

Put bluntly, within the North American energy markets, they too have been experiencing a bit of a boom. Only it’s not been in wind energy. Instead, it’s been driven by a long-term bet on shale gas - with transactions up 135% in 2011, when compared to the same period in 2010.

And while you can’t fault North American investors for following the US government and the easy market, it does go some way towards explaining why – when it comes to wind energy – North American clean energy investors, look to Europe

What a difference a year makes.

The European energy market was alive and kicking last week following, what had been for many, a protracted seasonal break.

Repower completed its acquisition of PowerBlades, Fuhrlander acquired a majority stake in W2E Wind to Energy and BP climbed into bed with Sempra, to collaboratively develop a major new wind farm initiative in Kansas.

This combined with a whole string of deals nearing completion (at least, if you believe the city rumour mill) suggests that you’d be forgiven for thinking you’d overslept and woken up twelve months late.

Whatever the case, as the market gallops through January, there’s a renewed sense of optimism in the air and a sense that if wind energy is to truly succeed, then there’s some serious work to be done.

Compare this deal flow with the European M&A market and you start to get a sense for what this really means; since activity within the wider private equity industry remains at an all time low - a vicious circle, perpetuated by investors sitting on their hands as well as their cash.

Perhaps then, the renewables market – and European wind energy in particular – offers the investment community a light at the end of the tunnel?

Quite possibly. After all, the market certainly isn’t averse to welcoming fresh investment and - provided the price is right - there’s still plenty of scope for future innovation and growth.

But that’s not the really interesting thing... Since the real interest comes in the contrasts to be drawn between the state of the North American and European marketplace.

Put bluntly, within the North American energy markets, they too have been experiencing a bit of a boom. Only it’s not been in wind energy. Instead, it’s been driven by a long-term bet on shale gas - with transactions up 135% in 2011, when compared to the same period in 2010.

And while you can’t fault North American investors for following the US government and the easy market, it does go some way towards explaining why – when it comes to wind energy – North American clean energy investors, look to Europe

What a difference a year makes.

The European energy market was alive and kicking last week following, what had been for many, a protracted seasonal break.

Repower completed its acquisition of PowerBlades, Fuhrlander acquired a majority stake in W2E Wind to Energy and BP climbed into bed with Sempra, to collaboratively develop a major new wind farm initiative in Kansas.

This combined with a whole string of deals nearing completion (at least, if you believe the city rumour mill) suggests that you’d be forgiven for thinking you’d overslept and woken up twelve months late.

Whatever the case, as the market gallops through January, there’s a renewed sense of optimism in the air and a sense that if wind energy is to truly succeed, then there’s some serious work to be done.

Compare this deal flow with the European M&A market and you start to get a sense for what this really means; since activity within the wider private equity industry remains at an all time low - a vicious circle, perpetuated by investors sitting on their hands as well as their cash.

Perhaps then, the renewables market – and European wind energy in particular – offers the investment community a light at the end of the tunnel?

Quite possibly. After all, the market certainly isn’t averse to welcoming fresh investment and - provided the price is right - there’s still plenty of scope for future innovation and growth.

But that’s not the really interesting thing... Since the real interest comes in the contrasts to be drawn between the state of the North American and European marketplace.

Put bluntly, within the North American energy markets, they too have been experiencing a bit of a boom. Only it’s not been in wind energy. Instead, it’s been driven by a long-term bet on shale gas - with transactions up 135% in 2011, when compared to the same period in 2010.

And while you can’t fault North American investors for following the US government and the easy market, it does go some way towards explaining why – when it comes to wind energy – North American clean energy investors, look to Europe

What a difference a year makes.

The European energy market was alive and kicking last week following, what had been for many, a protracted seasonal break.

Repower completed its acquisition of PowerBlades, Fuhrlander acquired a majority stake in W2E Wind to Energy and BP climbed into bed with Sempra, to collaboratively develop a major new wind farm initiative in Kansas.

This combined with a whole string of deals nearing completion (at least, if you believe the city rumour mill) suggests that you’d be forgiven for thinking you’d overslept and woken up twelve months late.

Whatever the case, as the market gallops through January, there’s a renewed sense of optimism in the air and a sense that if wind energy is to truly succeed, then there’s some serious work to be done.

Compare this deal flow with the European M&A market and you start to get a sense for what this really means; since activity within the wider private equity industry remains at an all time low - a vicious circle, perpetuated by investors sitting on their hands as well as their cash.

Perhaps then, the renewables market – and European wind energy in particular – offers the investment community a light at the end of the tunnel?

Quite possibly. After all, the market certainly isn’t averse to welcoming fresh investment and - provided the price is right - there’s still plenty of scope for future innovation and growth.

But that’s not the really interesting thing... Since the real interest comes in the contrasts to be drawn between the state of the North American and European marketplace.

Put bluntly, within the North American energy markets, they too have been experiencing a bit of a boom. Only it’s not been in wind energy. Instead, it’s been driven by a long-term bet on shale gas - with transactions up 135% in 2011, when compared to the same period in 2010.

And while you can’t fault North American investors for following the US government and the easy market, it does go some way towards explaining why – when it comes to wind energy – North American clean energy investors, look to Europe

What a difference a year makes.

The European energy market was alive and kicking last week following, what had been for many, a protracted seasonal break.

Repower completed its acquisition of PowerBlades, Fuhrlander acquired a majority stake in W2E Wind to Energy and BP climbed into bed with Sempra, to collaboratively develop a major new wind farm initiative in Kansas.

This combined with a whole string of deals nearing completion (at least, if you believe the city rumour mill) suggests that you’d be forgiven for thinking you’d overslept and woken up twelve months late.

Whatever the case, as the market gallops through January, there’s a renewed sense of optimism in the air and a sense that if wind energy is to truly succeed, then there’s some serious work to be done.

Compare this deal flow with the European M&A market and you start to get a sense for what this really means; since activity within the wider private equity industry remains at an all time low - a vicious circle, perpetuated by investors sitting on their hands as well as their cash.

Perhaps then, the renewables market – and European wind energy in particular – offers the investment community a light at the end of the tunnel?

Quite possibly. After all, the market certainly isn’t averse to welcoming fresh investment and - provided the price is right - there’s still plenty of scope for future innovation and growth.

But that’s not the really interesting thing... Since the real interest comes in the contrasts to be drawn between the state of the North American and European marketplace.

Put bluntly, within the North American energy markets, they too have been experiencing a bit of a boom. Only it’s not been in wind energy. Instead, it’s been driven by a long-term bet on shale gas - with transactions up 135% in 2011, when compared to the same period in 2010.

And while you can’t fault North American investors for following the US government and the easy market, it does go some way towards explaining why – when it comes to wind energy – North American clean energy investors, look to Europe

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Not a member yet?

Become a member of the 6,500-strong A Word About Wind community today, and gain access to our premium content, exclusive lead generation and investment opportunities.