BusinessCorporate FinanceIt’s a steel for advisers

It’s a steel for advisers

Steel baron Lakshmi Mittal’s insatiable appetite for deals and the continuing speculation around the future of FTSE 100 steel group Corus keeps UK advisers in the sector busy

Steel baron Lakshmi Mittal’s insatiable appetite for deals and the continuing
speculation around the future of FTSE 100 steel group Corus has kept UK advisers
in the sector busy, even though the bulk of deal activity is taking place in
emerging markets.

In an analysis of the sector, PricewaterhouseCoopers found that 250 metal
industry deals worth $35bn (£18.7bn) were completed in 2005. Over half of this
value came from deals located in central and eastern Europe, the Asia Pacific
and Latin America, but with London-based Mittal continuing to pursue substantial
acquisitions, UK corporate financiers have been able to take advantage of the
rapid consolidation in the sector.

Mittal won the auction to purchase Ukraine steel mill KryvorizhStal for
$4.6bn in October last year and in January 2006 launched an audacious bid to buy
the world’s second largest steelmaker Arcelor. The future of Corus in the midst
of this consolidation has also had local advisers preparing for more activity in
the future.

The consolidation of the sector is set to continue and will require
specialist accounting knowledge as most of the acquisition targets are located
in emerging markets.

Richard Sykes, global industrial products leader at PwC, says accountants are
needed to establish the ownership of assets targeted by consolidators and
convert accounts to IFRS.

‘There certainly are wider areas that need to be dealt with when working on a
deal in an emerging market. Understanding the history and ownership of assets is
crucial and changing from national accounting into IFRS needs to be done,’ he
says.

Related Articles

Grant Thornton recruits new corporate finance partner

Accounting Firms Grant Thornton recruits new corporate finance partner

10m Emma Smith, Managing Editor
Total fraud value at £2bn five-year high, finds BDO

Accounting Firms Total fraud value at £2bn five-year high, finds BDO

11m Stephanie Wix, Writer
MHA MacIntyre Hudson appoints corporate finance director

Accounting Firms MHA MacIntyre Hudson appoints corporate finance director

11m Stephanie Wix, Writer
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

11m Stephanie Wix, Writer
KPMG announces senior partner promotion in Newcastle

Accounting Firms KPMG announces senior partner promotion in Newcastle

11m Stephanie Wix, Writer
Independent city firm reports 70% growth

Accounting Firms Independent city firm reports 70% growth

11m Stephanie Wix, Writer
Tax avoidance crackdown sees 80% jump in additional HMRC revenue

Accounting Firms Tax avoidance crackdown sees 80% jump in additional HMRC revenue

11m Stephanie Wix, Writer
Making Tax Digital: the "unexpected item in the bagging area"

Accounting Standards Making Tax Digital: the "unexpected item in the bagging area"

11m Stephanie Wix, Writer