Energy firms to be takeover targets
“We believe some of the largest deals could be initiated by companies with unfulfilled global ambitions,” UBS analysts wrote in a note to investors.
Mergers and acquisitions within European utilities peaked in 2006 and 2007 when deals with an average total value of €110 billion were announced, in terms of enterprise value. Since then, volumes have dropped more than sixfold, UBS said. With demand for gas boosting electricity prices, utilities may consider acquisitions as a way to expand their portfolios, they said.
