Nuclear Energy Quarterly Deals Analysis Q4 2009

Nuclear Energy Quarterly Deals Analysis Q4 2009

The "Nuclear Energy Quarterly Deals Analysis Q4 2009" report is an essential source of data on the mergers and acquisitions (M&A) and financings in the nuclear energy market. The report provides detailed information on the M&As, equity/debt offerings, private equity, venture financing and partnership transactions registered in uranium mining and processing, equipment and services and power generation markets in Q4 2009. The report gives detailed comparative data on the number of deals and their value in the last five quarters subdivided by deal types, segments, and geographies. Additionally, the report provides information on the top private equity, venture capital and advisory firms in the nuclear energy industry.

Investments In The Nuclear Energy Industry Declined By 70% In Q4 2009

Global investments in the nuclear energy industry witnessed a huge decrease in deal value, reporting $12.5 billion in Q4 2009, compared to $41.4 billion in Q3 2009. The number of deals also declined from 186 deals in Q3 2009 to 141 deals in Q4 2009. On a year-on-year basis, the nuclear energy market declined by 39% in the number of deals and 72% in deal value in Q4 2009, when compared 233 deals worth $44.7 billion in Q4 2008. The difficulty in raising finance and start-up expenses, coupled with the global economic downturn, led to an overall decline in investments in Q4 2009.

The report expects the industry to flourish in 2010 because the WNA energy index registered positive signs in Q4 2009, which will certainly boost investments in the near future. Meanwhile, new reactor projects are in progress in the US, the UK and other established nuclear countries. In the coming three to five years, however, Asia will likely dominate new reactor construction, led by China and India. Around 18 reactors were under construction at the end of 2009 in China and India signed the nuclear cooperation agreement.

The year 2009 ended with some positive news for the industry, as one of the potential countries in the nuclear energy market, the United Arab Emirates, awarded a contract for four nuclear reactors to Kepco of Korea, while the Canadian Government signed a civil nuclear cooperation agreement with India.

Mergers & Acquisitions In The Nuclear Energy Market Declined By 79%, While Asset Purchase Transactions Increased Sharply In Q4 2009

Mergers and acquisitions (M&As) in the nuclear energy industry declined by 79% in deal value, from $818.7 million in Q3 2009 to $170.7 million in Q4 2009, which shows that companies are wary of regulatory policies and economic uncertainty. The number of M&A deals also decreased from 13 deals in Q3 2009 to eight deals in Q4 2009. Dongfang Heavy Machinery's proposed acquisition of DongFang Electric for $22.9 million, South Texas Mining Venture's proposed acquisition of Uranium Energy for $11.1 million, and Cibola Resources’ proposed acquisition of Neutron Energy for $11 million were some of the major deals recorded in Q4 2009.

Further, the value of asset purchase transactions increased over seven fold in Q4 2009, reporting 14 deals worth $266.2 million in Q4 2009, compared to 13 deals worth $37.7 million in Q3 2009. The huge difference in deal value in Q4 2009 can be attributed to Korea Electric Power's proposed acquisition of a 10% interest in the Imouraren uranium mine from Areva for $250 million, which will enable Korea power to meet its increasing domestic demand for the fuel. The Imouraren uranium mine is expected to produce 6,000 tons of uranium annually by 2013 and expand its output to 8,000 tons by 2019.

According to Uma Bhanu Kondury, an analyst, "Although, the cost competitiveness of nuclear fuel compared to other alternative sources is increasing the role of nuclear power in the global energy mix, there has been a cautious approach from investors in undertaking long-term projects owing to concerns regarding funding."

Decreased Financing Through Debt Offerings

Debt offerings, including secondary offerings and private placements decreased in terms of the number of deals and deal value, reporting 78 deals worth $8.7 billion in Q4 2009, compared to 101 deals worth $38.6 billion in Q3 2009. Capital raising in the public markets was not so lucrative due to the economic uncertainty and credit crunch prevailing in the market. Public debt offerings reported a decline of 64% in the deal value from $20.5 billion in Q3 2009 to $7.3 billion in Q4 2009; and private debt placements saw a huge decline in deal value in Q4 2009 reporting $1.3 billion, compared to $18.1 billion in Q3 2009.

Furthermore, global equity offerings, including initial public offerings (IPOs), secondary offerings, and private investment in public equities, witnessed an increase in deal value, reporting $3.4 billion in Q4 2009 compared to $2 billion in Q3 2009, attributable to one major deal – PGE Polska Grupa Energetyczna’s IPO of 259 million new ordinary shares for $2.1 billion. However, the number of equity offerings decreased by 32% from 53 deals in Q3 2009 to 36 deals in Q4 2009.

Investment Falling Off Cliff In North America And Europe In Q4 2009

Nuclear energy investments in North America and Europe witnessed a huge decline in deal value in Q4 2009. Europe registered investments of $5.5 billion in Q4 2009, compared to $25.5 billion in Q3 2009, and North America recorded investments of $3.8 billion in Q4 2009, compared to $11.9 billion in Q3 2009. Furthermore, the number of deals also decreased in Europe and North America. Europe recorded eight nuclear energy deals in Q4 2009, compared to 17 deals in Q3 2009, and North America reported 104 deals in Q4 2009 compared to 111 deals in Q3 2009. Further, Asia-Pacific registered a decrease in investments, reporting 15 deals worth $2.7 billion in Q4 2009, compared to 26 deals worth $3.2 billion in Q3 2009.

According to Uma Bhanu Kondury, an analyst, "Deliberations on starting new investments and wait and watch policy of companies in anticipation of full economic recovery have led to this lower volume of mergers and acquisitions. The slower recovery from the financial crisis has reflected on the investments in the European region, while in the Asia-Pacific region, investments will see an increase in investments in next decade as many of the planned nuclear reactors will begin construction."

Nuclear Energy Quarterly Deals Analysis Q4 2009

Summary

The "Nuclear Energy Quarterly Deal Analysis Q4 2009" report is an essential source of data and trend analysis on the mergers and acquisitions and financings in the nuclear energy market. The report provides detailed information on M&A, Equity/Debt Offerings, Private Equity, Venture Financing and Partnership transactions registered in the nuclear energy industry in Q4 2009. The report portrays detailed comparative data on the number of deals and their value in the last five quarters subdivided by deal types, segments, and geographies. Additionally, the report provides information on the top private equity, venture capital, and advisory firms in the nuclear energy industry.

Scope

- Analyze market trends for the nuclear energy market in the global arena
- Review of deal trends in uranium mining & processing, equipment and services, and power generation markets
- Analysis of M&A, Equity/Debt Offerings, Private Equity, Venture Financing and Partnerships in the nuclear energy industry
- Summary of nuclear energy deals globally in the last five quarters
- Information on top deals happened in the nuclear energy industry
- Geographies covered include – North America, Europe, Asia Pacific, South & Central America, and Middle East & Africa
- League Tables of financial advisors in M&A and equity/debt offerings. This includes key advisors such as Morgan Stanley, Credit Suisse, and Goldman Sachs

Reasons to buy

- Enhance your decision making capability in a more rapid and time sensitive manner
- Find out the major deal performing segments for investments in your industry
- Evaluate type of companies divesting / acquiring and ways to raise capital in the market
- Do deals with an understanding of how competitors are financed, and the mergers and partnerships that have shaped the nuclear energy market
- Identify major private equity/venture capital firms that are providing finance in the nuclear energy market
- Identify growth segments and opportunities in each region within the industry
- Look for key financial advisors where you are planning to raise capital from the market or for acquisitions within the industry
- Identify top deals makers in the nuclear energy market