Global Energy, Mining, Utilities (EMU) M&A activity totalled US$ 426.7bn in 2013, a decline of 26.5% from last year (US$ 580.7bn). The sector was overshadowed by TMT activity in 2013 which put an end to the three-year consecutive increase and previous dominance. Even though Q4 2013 was valued at US$ 116bn which represented the lowest final quarter of any year since 2008 (Q4 was valued at US$ 48.5bn), it was the highest valued quarter of 2013. Q4 increased deal values by 20.1% compared to Q3 (US$ 96.6bn).
The EMU sector accounted for 19.3% of the total global M&A value (US$ 2,216.3bn). This was the lowest proportion in five years where in 2008 the sector registered US$ 414.8bn-worth of deals that accounted for a 17.2% share of global M&A. 2013 was the first time in three years to see the proportion drop below a quarter of global M&A.
Sub sector overview: Utilities (US$ 42.2bn) saw an increase of 48.1% over 2012 (US$ 28.5bn) by value, while Energy (US$ 331.7bn) and Mining (US$ 52.7bn) transaction values dropped by 23.8% and 54.8% respectively compared to last year (in 2012 Energy was valued at US$ 435.4bn and Mining valued at US$ 116.8bn).
The number of private equity buyouts in the sector were at the highest level since 2010 but the 133 buyouts valued at US$ 18.3bn decline 52.7% compared to the 121 buyouts valued at US$ 38.7bn in 2012 marking a second annual decline by value. The largest EMU transaction of the year is Russian Grids’ US$ 14.4bn bid for Federal Grid Company of Unified Energy System in April; followed by US based Spectra Energy Partner’s US$ 12.3bn acquisition of Spectra Energy Corp’s U.S. transmission, storage and liquids assets in August.