EY: mining deals on the way
Increased merger and acquisition activity and asset fire sales predicted in mining sector
Ernst & Young is predicting a spate of merger and acquisitions
transactions in the second half of the year as indebted mining companies are
forced to sell assets at distressed prices.
The E&Y report highlights a gap between valuation expectations of buyers
and sellers of mining assets, but says that it is expected to narrow later this
year.
A number of valuable projects exist, but their owners lack the means to get
them off the ground, Michael Lynch-Bell, the report’s author, said.
He is forecasting a number of ‘substantial’ deals, in the range of
£1.4-£7.2bn, from cashed-up mid tiers and specialist funds.
Further reading:
M
&A begins to show signs of recovery
Recession
strategy: surgery, not butchery