It's been an active year for mergers and acquisitions in the utility sector. We discuss our key takeaways from a major deal that closed ahead of schedule and highlight some of the main themes that will be in play going forward.
Consolidation continues apace in the utility sector, as operators seek to take advantage of frothy stock prices to improve their economies of scale and increase their exposure to growing demand for natural gas.
We update our takes on the various pending acquisitions involving the more than 200 essential-services stocks that we cover in our Utility Report Card.
The proposed combination of SolarCity and Tesla Motors amounts to little more than a bailout of the fatally flawed renewable-energy company that loses more money with each incremental sale. Investors looking for exposure to clean energy should stay away.
Although Exelon could be forgiven for swearing off future deals after enduring a painfully drawn-out approval process for its acquisition of Pepco, the management team has expressed an appetite for another merger. If the company completed due diligence on an alternative acquisition, a follow-up deal could come sooner than you might expect.
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