Downturn Fuelling Consolidation In US Energy Sector

A slump in electricity demand - especially among industrial customers - during the economic downturn, has forced utilities to slash costs and cull projects. This has served to leave the sector wide open for consolidation. In a market which includes more than 250 mid-size and large utilities and distribution companies (according to Karl Miller , founder of MMC Energy ), there is indeed scope for deals to be made. Supportive of this argument, M&A in the US energy power sector so far in 2010 stands at US$26bn, accounting for 52% of global deal value - according to data from Thomson Reuters. Interestingly, global M&A in the sector stands at more than double the value of deals announced in the sector during the same time period in 2009.

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