Spanish Energy Deal Pulse: Following 12 months of intense transactional activity, the market anticipates an even more dynamic second half of 2024, driven by growth in key sectors related to the energy transition
In this report, A&M Spain's Energy group analyses the evolution of the transactions in the energy sector of the period from June 2023 to June 2024 (“LTM”).
In Europe, while the number of transactions has decreased compared to the previous 12 months, the total deal value in euros has risen, showing a 38% increase.
In the LTM, the Spanish M&A market has performed in line with the European market until Q2 2024, which has underperformed, resulting in a lower deal value for Spanish assets compared to the same period in 2023.
However, building on the positive trends in renewable generation (62% S1 2024), Spain faces significant growth opportunities in other critical sectors essential for the energy transition. To fully capitalize on these opportunities and address existing challenges, such as technical constraints and falling investor returns, regulatory changes will be crucial. These changes will support Spain's goal of becoming a leading European electrical hub.
In summary, at A&M, we believe that transactional activity in the sector will continue, but we expect to see deals in sectors beyond conventional renewables.
