In recent years, with the continuous expansion of global mining companies and the continuous reconstruction of the mining landscape, restructuring and mergers and acquisitions, as a form of international mining cooperation, have become an important means for enterprises to expand and develop and enhance their competitiveness. An important means of expansion.
Global mining mergers and acquisitions since 2020
Affected by the epidemic in 2020, the global mining M&A market has shown new trends. According to S&P data, in the first half of 2020, a total of 523 global mining mergers and acquisitions were completed, a decrease of 20.51% compared with the same period in 2019. However, there were 358 transactions in the precious metals field, an increase of 4.47% year-on-year, and only 76 in the base metal field, a year-on-year decline. 49.33%.
The number of global M&A transactions declined in the first half of the year
Recently, PricewaterhouseCoopers launched the "2020 Mid-term Global M&A Industry Insights" for the global M&A market. The report shows that the number of global M&A transactions in the mining and metals sector has declined, but it is still ahead of other energy, utilities and resources sectors.
According to the report, in the first half of 2020, the average transaction size of the global mining and metals industry fell by 25%; the global oil and gas industry supported by the upstream oil and gas industry transactions, the transaction scale was stable, but the number of transactions declined. This is mainly due to the relatively stable or even rising prices of key commodities in the mining and metal sectors from 2019 to 2020 (iron ore and steel) (such as gold mines), while other sectors (such as oil) are more affected by the new crown pneumonia. In addition, the number of mining and metal sector transactions in the first half of 2020 decreased by 0.3%, mainly due to the relatively sufficient funds in the mining and metals industry compared with other industries.
According to data from the British Financial Times, since the second quarter, global M&A (M&A) transaction volume has only been US$485 billion. Among them, the US market’s M&A transaction volume in the second quarter fell by 90% year-on-year to only US$75 billion, a record high. New low since the subprime mortgage crisis. The decline in block transactions was particularly pronounced. According to statistics from the data provider Refinitiv, since the beginning of this year, M&A cases involving more than $10 billion in the global market have fallen by 60% year-on-year.
