Mining M&A forecast in 2018

While global economic growth has increased in the past few years, mining M&A activity has not seen a similar increase. However, a report published by KPMG on mining M&A activity during the second half of 2017 shows that business conditions appear to have improved for the mining sector. KPMG believes that mining companies’ focus on correcting their balance sheets and winning back investors have had a positive impact on their cash accounts and have given mining companies some flexibility to become more active in acquisitions. Comparing M&A activity from July to December 2017 to that of the first half of the year, mergers and acquisitions greatly expanded in North America and Asia, both in deal volume and value. Globally, however, deal volume has increased but average deal size continued to shrink, with only two transactions exceeding $1 billion. The focus on smaller value deals appears to be caused by mining companies pursuing strategic acquisitions and…

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