Mining Mergers and Acquisitions dropped in percentage in 2013
The volume of global operations also fell last year to its lowest level in almost a decade
From U.S. $ 36 billion to U.S. $ 56 billion. That was the fall that targeted values of mining mergers and acquisitions worldwide in 2013 over the previous year, equivalent to a loss of 35% according to the latest PwC’s report.
The decline is not isolated. The trend had already been showing the past few years. During the peak of 2011, the amount reached $ 149 billion, a figure four times higher than in 2013.
Not only the values fell. The deal volume decreased from 1,803 to 1,437 transactions. Since 2005 the scenario was not so bad for this type of treatment, when they reached 1,201 operations. The report reveals that in 2013 there was a geographical shift in buyers worldwide mining industry. While Western countries were more active in the number of agreements made, the value of treatment was higher in the East.
Countries like Russia, China and Kazakhstan accumulated 43% of the securities of mining operations in 2013, while the United States, Canada and Australia represented 34% of total amount.
This year, the scenario could be a little more optimistic in terms of mergers and acquisitions in the sector.-
In PwC estimated that mining could rise in the coming months due to the developed economies are more stable.
According to the report, it is expected that during 2014 many midsize companies are active buyers, while large continue to sell goods. To meet the target, some of the junior companies will have to make the decision to merge with any mining giant to stay afloat.-
Source: El Mercurio
