Decarbonizing Canada's electricity grid could lead to a significant uptick in mergers and acquisitions in the renewable energy sector, a new report says.
But the report also suggests deal activity could pick up again in the next six months, with the renewable energy sector poised to be a potential bright spot.In Canada from Jan. 1 to May 31, 2024, across all sectors, there were 952 corporate merger or acquisition deals with a total value of $72 billion, the PwC report shows.
But as inflation eases and with central banks beginning to cut interest rates, deal-making should start to pick up again, Chu said. In particular, buyers who have been sitting on capital over the last two or three years will be motivated to deploy it once interest rates and financing costs begin to decline.
Chu said renewable energy projects, such as wind and solar farms, often change hands multiple times between the development, construction and operational phases. A flurry of new green energy development could spark a wave of M&A activity, he said.