Mining, metals M&A could be poised for rebound, EY says

Global mining and metals deal appetite could be poised for a rebound in the next 12 months, according to a report by consultancy group EY.

The 19th EY Global Capital Confidence Barometer (CCB) found that 58% of global mining executive respondents intend to pursue mergers and acquisitions (M&A) in the next 12 months, compared with an average of 46% across all sectors. The focus in 2018 is shifting from divestment-led mining M&A transactions to strategic growth-centered deals, the report said. Consolidations for scale and efficiency may also become a critical driver of deals in the sector. “Divergence in commodity price performance is expected; miners will diversify by region and commodity to balance portfolios and hedge against revenue fluctuations,” EY said. “The rapid evolution and expected growth of...

Published

Andrea Hotter

November 08, 2018

12:48 GMT

London