Wednesday, 27 Jul 2011
Advisory and accountancy firm Ernst & Young said that mining mergers and acquisitions doubled in the first half, coming close to the total for the whole of last year, although the pace was tempered by concerns over global macroeconomics and resource nationalism.
Total deal value jumped to USD 96.3 billion from USD 47.9 billion in the year earlier period, in part reflecting the larger size of deals in the sector. There was USD 113.7 billion of deals made in the whole of last year. Coal deals led the way in terms of value while gold transactions were tops by volume.
Mr Lee Downham, Ernst & Young's global mining & metals transaction advisory leader told Reuters that "Momentum is growing. We could see over USD 200 billion worth of deals by the end of the year."
The number of initial public offerings in mining & metals rose 30% to 73 in the first half, while total proceeds more than doubled to USD 13.0 billion, mainly on the USD 10 billion listing of commodities trader Glencore.
Mr Downham said that "It's difficult to say the numbers are up because of Glencore, because you could argue that if Glencore didn't happen the money could have gone to other IPOs."
He expects to see a significant number of mining and metals IPOs in the second half and beyond, although he said it would only take an event like a Greek default to delay IPOs. He said that "There are lots of IPOs in the second half that could have happened in the first half if Glencore hadn't listed."
Miners operating in Africa, the CIS, India and South America are looking at listing in London. Ernst & Young is working on a number of mining IPO deals at the top end of the FTSE 250 index and a couple of larger listings.
The companies looking to IPO operate in a diverse range of commodities including precious group metals, copper, gold and iron ore. He added that the firm is as busy as it was at the peak of the market in 2006-07.
(sourced from Reuters)
Advisory and accountancy firm Ernst & Young said that mining mergers and acquisitions doubled in the first half, coming close to the total for the whole of last year, although the pace was tempered by concerns over global macroeconomics and resource nationalism.
Total deal value jumped to USD 96.3 billion from USD 47.9 billion in the year earlier period, in part reflecting the larger size of deals in the sector. There was USD 113.7 billion of deals made in the whole of last year. Coal deals led the way in terms of value while gold transactions were tops by volume.
Mr Lee Downham, Ernst & Young's global mining & metals transaction advisory leader told Reuters that "Momentum is growing. We could see over USD 200 billion worth of deals by the end of the year."
The number of initial public offerings in mining & metals rose 30% to 73 in the first half, while total proceeds more than doubled to USD 13.0 billion, mainly on the USD 10 billion listing of commodities trader Glencore.
Mr Downham said that "It's difficult to say the numbers are up because of Glencore, because you could argue that if Glencore didn't happen the money could have gone to other IPOs."
He expects to see a significant number of mining and metals IPOs in the second half and beyond, although he said it would only take an event like a Greek default to delay IPOs. He said that "There are lots of IPOs in the second half that could have happened in the first half if Glencore hadn't listed."
Miners operating in Africa, the CIS, India and South America are looking at listing in London. Ernst & Young is working on a number of mining IPO deals at the top end of the FTSE 250 index and a couple of larger listings.
The companies looking to IPO operate in a diverse range of commodities including precious group metals, copper, gold and iron ore. He added that the firm is as busy as it was at the peak of the market in 2006-07.
(sourced from Reuters)
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