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...