Thursday, 02 Jun 2011
With stronger balance sheets, improved credit availability and stabilizing metal prices, PwC Tuesday forecast the recovery in global metals M&A is expected to continue for this balance of this year.
Iron ore targets were the primary driver of global metals M&A activity during the first quarter of 2011, contributing almost 40% of the deals worth a total of USD 5.1 billion, a significant increase over full year 2010 when iron ore represented only 20% of total deals.
Mr Jim Forbes PwC global materials leader said that "The focus on iron ore deals illustrates the need for companies to integrate reliable iron ore supplies into their organizational structures. Additionally, we've seen an uptick in these deals due to horizontal consolidation of some of the smaller players."
The iron ore M&A category was aided by the proposed USD 4.1 billion acquisition of Canadian miner Consolidated Thomson.
In their analysis, PwC noted that the number of mega deals with a disclosed value of at least USD 1 billion decreased slightly during the first quarter. During the first quarter 2011, four mega deals were announced. (sourced from Mineweb)
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