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
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 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
The Financial Reporting Council has issued guidance regarding the annual reporting of 1,200 large and smaller listed companies. The letter highlighted the key issues and improvements that can be made in the 2016 reporting season
Baldwins Accountancy Group has continued investment in the north-east and appointed David Fish as a director in its corporate finance team
UK M&A activity bounced back strongly in July and August, according to analysis by the deals practice at PwC.
Smith & Williamson has added Jim Clark and Philip Marsden, of Marsden Clark Corporate Finance Limited, to its corporate finance team.