22 Jan 2021
Posted in Business Fundamentals
HSBC and Ernst & Young were top M&A financial advisers by value and volume in global power sector for 2020
HSBC and Ernst & Young were the top mergers and acquisitions (M&A) financial advisers in the global power sector for 2020 by value and volume, respectively. HSBC advised on six deals worth US$30.7bn, which was the highest value among all the advisers. Meanwhile, Ernst & Young led in volume terms having advised on 27 deals worth US$3.3bn. A total 2,033 M&A deals were announced in the sector during 2020, marking a 18.3% decrease over the 2,487 deals announced in 2019, according to GlobalData, a leading data and analytics company.
According to GlobalData’s report, ‘Global and Power M&A Report Financial Adviser League Tables 2020’, deal value increased by 1% from US$272bn in 2019 to US$275bn in 2020.
Aurojyoti Bose, Lead Analyst at GlobalData, comments: “Ernst & Young was among the only two firms (the other firm being PwC) that managed to advise on more than 20 deals. PwC, which occupied the second position by value, advised on 21 deals worth US$1.4bn. Surprisingly, both Ernst & Young and PwC not only lost the top position by value to HSBC that only advised on a single-digit deal volume, but also failed to secure a ranking in the list of top ten advisers by value.
“HSBC managed to advise on four billion-dollar deals worth greater than or equal to US$1bn including a mega deal (deal valued more than or equal to US$10bn). It was also the only firm to cross US$30bn during 2020.”
Morgan Stanley occupied the second position in GlobalData’s ranking of financial advisers for M&As in the global power sector by value with 16 deals worth US$27.9bn, followed by Goldman Sachs with 15 deals worth US$22.6bn and BNP Paribas with 11 deals worth US$22bn.
Morgan Stanley also held the third position by volume, followed by Rothschild & Co with 16 deals worth US$7.8bn.