The combined value of company- and asset-level mergers and acquisitions in the US electric, multi-utility and independent power producer sector gained momentum in the first quarter of 2023, although the number of individual asset deals declined year over year.
The aggregate value of individual asset deals in the first quarter grew 46.7% year over year to $2.01 billion, despite the number of those deals dropping to 33 from 47 in the same quarter of 2022, according to an analysis of S&P Global Market Intelligence data.
Elsewhere, the combined value of corporate-level M&A deals in the quarter was $3.60 billion through nine transactions, a surge from $170 million through eight transactions a year earlier. Quarter over quarter, both the value and number of first-quarter whole company and minority deals represent a decrease from $8.81 billion through 14 transactions.
Market Intelligence calculates the deal's transaction value from the amount paid for equity and in cash plus the value of assumed current liabilities, net of current assets.
Whole company, minority deals
FirstEnergy Corp.'s divestiture of an additional 30% stake in FirstEnergy Transmission LLC to Brookfield Super-Core Infrastructure Partners LP for $3.5 billion in cash topped the list of corporate M&A deals in the first quarter of 2023.
FirstEnergy executives said the transaction will bolster the company's financial position and support its growth as it proceeds with "smart grid and clean energy investments" in its regulated transmission and distribution businesses.
Another notable whole-company transaction during the quarter was Marathon Petroleum Corp.'s acquisition of a 49.9% interest in renewable natural gas producer LF Bioenergy from Cresta Fund Management for $100 million.
– Use our Transactions Statistics page to run a custom screen of M&A transactions.
– Use our M&A Replay page to view more data on other M&A deals.
Asset deals
In January, MN8 Energy Inc. exercised an option to purchase US Solar Fund PLC's 50% stake in the 200-MWdc Mount Signal Solar 2 project in Imperial County, Calif., for $52.2 million.
Upon deal completion, MN8 Energy, formerly Goldman Sachs Renewable Power LLC, will become the 100% owner of the facility.
S&P Global Commodity Insights produces content for distribution on S&P Capital IQ Pro.