New figures from Deloitte have revealed 140 completed low-carbon mergers and acquisitions (M&A) deals globally, each worth more than £36.6 million, in the first half of 2021.
The UK was home to 11 of these transactions in the global drive towards greener fuels, with companies enthusiastic to acquire solar, wind and other energy technologies, the professional services firm said.
‘Long-term view’
Shaun Reynolds, oil and gas transaction services partner in the Aberdeen office of Deloitte, said: “Low-carbon technology is becoming increasingly attractive as a core investment strategy as both governments and corporates set ambitious targets towards net-zero.
“Regardless of the impact of Covid-19, low-carbon M&A transaction volumes have remained steady. There was a pick-up in deals in the second half of 2020, showing that investors took a long-term view of the importance of the energy transition.
“I expect to see further investment in enabling technologies such as EV (electric vehicle) charging, battery storage and energy technology that will keep low-carbon deal volumes on the up.”
Superpowers top low-carbon M&A table
The US delivered the highest number of low-carbon deals in H1 2021 (22), followed by China (19), Spain (16), the UK (11) and India (10). By contrast, South America was the least active region, with only five transactions – less than 4% of global activity.
By sector, solar and wind were the most predominant, accounting for two-thirds of all transactions.
Deloitte environmental, social, and governance (ESG) M&A leader James Hilburn said: “Not only is ESG influencing business strategies and decision-making, but it is also measurably increasing asset values. This activity presents both substantial risks and opportunities that can become a source of competitive advantage in the world of M&A.”