12 November 2010 15:33 [Source: ICIS news]
The study, carried out by consultancy PricewaterhouseCoopers (PwC), said
“Government subsidies and sector support provide clarity on a renewable energy project's economic return,” PwC said. “This, in turn, tends to spur venture capital, corporate and private investment activity.”
Another factor that would help drive M&A activity in Canada's renewables sector was its increasing maturity, which made it “ripe for consolidation”, said PwC.
Equally important were commitments by high-profile Canadian retailers to renewable energy and the sector’s long-term growth prospects in the country, which would prompt
“The future of the Canadian renewable sector does indeed look bright.” said PwC consultant Kristian Knibutat.
"With the right long-term policies and continued access to capital, [
But PwC also noted that
In fact, year to date, only 22% of North American renewable deals had a Canadian target, compared with 34% in 2009 and 30% in 2008, the consultancy said.
This was far below the average for the energy and mining sectors, where global deals with Canadian targets were much higher.
PwC's bullish forecast for M&A in Canada’s renewables sector comes amid some doubt about the outlook for M&A and foreign investment in the country after the government earlier this month blocked BHP Billiton’s $39bn (€28bn) hostile takeover bid for PotashCorp.
That decision has been heavily criticised, and the government has yet to fully disclose the reasons for its finding that the deal had “no net benefit for
($1 = €0.73)Check out Doris de Guzman’s Green Chemicals Blog for views on sustainability issues
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