Summary
The financial crisis has indeed dampened windpower project finance for the short-term. Such a situation precipitates strategic opportunities for well-placed players. This public statement by one of the largest global developers is evidence that the sector may open up with a bang in the near-term.
Analysis
EDF-EN owns, operates and develops a large portfolio in key global markets. CEO David Corchia's comments will be taken as an opening in the windpower markets, and evidence the beginning of the climb out of the effects of the global crisis in banking.
His announcement of EDF-EN's agreement to take turbines from Canada's Skypower (which included significant equity stake from Lehman Bros before the current crisis) confirms private discussions revealing there are more of these large framework deal takeouts.
The article also confirms this analyst's opinion that the current conditions make it ripe for increasing M&A activity in key markets globally. There are turbine manufacturers on the block as well, and this pattern may be increasing.
This analyst adds that current market conditions make accurate due diligence even more important than previously, especially in M&A activity
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
