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Surging Mergers

Buy or be bought - the new utility mantra.

Power and utility mergers soared to the highest quarterly pace in six years with a torrid 57 percent jump in deal volume in the fourth quarter of 2014 compared to one year earlier.

The deals’ aggregate value increased by 68 percent compared to the fourth quarter of 2013.

Big transactions helped set the pace.

“During the year, we saw deal activity driven by large corporate deals, renewable transactions and merchant power deals,” said Jeremy Fago, PwC’s U.S. power & utilities deals leader. PwC released the figures last week.

Fifteen renewable transactions totaled $4.8 billion. Eight corporate deals amounted to $12.6 billion.

“Going forward, larger utilities will stay focused on integrating previous megadeals, while continuing to keep an eye on the market for potential opportunities,” Fago said.

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