On March 9, PricewaterhouseCoopers released the latest mining transaction report showing that in 2010, Chinese buyers actually accounted for only 6% of global mining transactions, while Canada accounted for 36%, and the United States and Australia each accounted for 16%.
Although some people believe that China is gradually controlling global mining resources through mergers and acquisitions, the data for the decade ending December 2010 show that China is not a radical participant in global mining M&A activity.
In the 10 years to 2010, China had completed a total of 400 M&A transactions with a total value of nearly US$ 48 billion, which is a significant improvement compared with the insignificant status of Chinese companies in global M&A ten years ago.
Mining mergers and acquisitions as the fastest-growing sector PwC's latest mining transaction report shows that during the decade ending in 2010, other industries in the world did not see high transaction volumes or growth rates similar to mining. In just one and a half months of 2011, the total amount of global mining transactions announced has reached 27 billion U.S. dollars, a record high. About 81% of the focus is on gold, iron ore, coal, copper and fertilizers.
In 2010, PricewaterhouseCoopers tracked 2,693 global mining M&A deals, involving a transaction volume of US$113 billion. In the past ten years, more than 11,000 mergers and acquisitions transactions were completed, with a total transaction volume of nearly 785 billion U.S. dollars.
The data shows that mining mergers and acquisitions have obviously recovered from 2009, with transaction volume up 28% year-on-year, and transaction volume up 77% year-on-year. The announced total transaction volume broke the historical record, which was a 21% increase from the peak in 2007. However, due to the lack of mega-transactions (transactions exceeding US$10 billion), the total transaction volume was 26% lower than the 2006 peak. The decrease in super-large deals was mainly due to the lack of large-scale M&A targets.
Both the Canadian and Australian governments have taken steps to protect their natural resources. However, contrary to the protection of their own countries, the overseas M&A transactions of both countries exceeded the M&A of foreign companies for their local targets. Canadian buyers completed 236 overseas mergers and acquisitions totaling US$8 billion, while Australian buyers completed 109 overseas M&A transactions totaling US$9.7 billion.
Accelerating the pace of mining mergers in 2011 The PricewaterhouseCoopers report predicts that in spite of some potential challenges, the pace of mining mergers and acquisitions in 2011 will accelerate, and trading volume will increase.
Su Qiyuan, Partner of PricewaterhouseCoopers China Mining, said that “Asian countries from China and including India, South Korea and Japan are expected to continue to invest in certain sub-industries of global mining.†PricewaterhouseCoopers expects that India will dominate The M&A transaction will increase, mainly due to India’s desire to ensure the supply of iron ore and coal resources. The transaction can be used to raise funds from potential investors through private placements and to sign an underwriting or product sharing agreement.
In addition, mergers and acquisitions of non-traditional oil and gas resources such as rare earth, potash, mines, and oil sands and shale gas are expected to receive more and more attention.
One of the major challenges faced by mining companies in 2011 is how to overcome obstacles in the growing criticism of governments, shareholders, and non-governmental organizations. Tim Gold smith, global head of mining at PricewaterhouseCoopers, said, “It is not absolute whether mining mergers and acquisitions can maintain sustained growth, and there is disagreement about the sustainability of growth in emerging markets. Political and macroeconomic uncertainties are the current **Two major factors in mining mergers and acquisitions."
Although some people believe that China is gradually controlling global mining resources through mergers and acquisitions, the data for the decade ending December 2010 show that China is not a radical participant in global mining M&A activity.
In the 10 years to 2010, China had completed a total of 400 M&A transactions with a total value of nearly US$ 48 billion, which is a significant improvement compared with the insignificant status of Chinese companies in global M&A ten years ago.
Mining mergers and acquisitions as the fastest-growing sector PwC's latest mining transaction report shows that during the decade ending in 2010, other industries in the world did not see high transaction volumes or growth rates similar to mining. In just one and a half months of 2011, the total amount of global mining transactions announced has reached 27 billion U.S. dollars, a record high. About 81% of the focus is on gold, iron ore, coal, copper and fertilizers.
In 2010, PricewaterhouseCoopers tracked 2,693 global mining M&A deals, involving a transaction volume of US$113 billion. In the past ten years, more than 11,000 mergers and acquisitions transactions were completed, with a total transaction volume of nearly 785 billion U.S. dollars.
The data shows that mining mergers and acquisitions have obviously recovered from 2009, with transaction volume up 28% year-on-year, and transaction volume up 77% year-on-year. The announced total transaction volume broke the historical record, which was a 21% increase from the peak in 2007. However, due to the lack of mega-transactions (transactions exceeding US$10 billion), the total transaction volume was 26% lower than the 2006 peak. The decrease in super-large deals was mainly due to the lack of large-scale M&A targets.
Both the Canadian and Australian governments have taken steps to protect their natural resources. However, contrary to the protection of their own countries, the overseas M&A transactions of both countries exceeded the M&A of foreign companies for their local targets. Canadian buyers completed 236 overseas mergers and acquisitions totaling US$8 billion, while Australian buyers completed 109 overseas M&A transactions totaling US$9.7 billion.
Accelerating the pace of mining mergers in 2011 The PricewaterhouseCoopers report predicts that in spite of some potential challenges, the pace of mining mergers and acquisitions in 2011 will accelerate, and trading volume will increase.
Su Qiyuan, Partner of PricewaterhouseCoopers China Mining, said that “Asian countries from China and including India, South Korea and Japan are expected to continue to invest in certain sub-industries of global mining.†PricewaterhouseCoopers expects that India will dominate The M&A transaction will increase, mainly due to India’s desire to ensure the supply of iron ore and coal resources. The transaction can be used to raise funds from potential investors through private placements and to sign an underwriting or product sharing agreement.
In addition, mergers and acquisitions of non-traditional oil and gas resources such as rare earth, potash, mines, and oil sands and shale gas are expected to receive more and more attention.
One of the major challenges faced by mining companies in 2011 is how to overcome obstacles in the growing criticism of governments, shareholders, and non-governmental organizations. Tim Gold smith, global head of mining at PricewaterhouseCoopers, said, “It is not absolute whether mining mergers and acquisitions can maintain sustained growth, and there is disagreement about the sustainability of growth in emerging markets. Political and macroeconomic uncertainties are the current **Two major factors in mining mergers and acquisitions."
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