5/7/10 – Global Metals Industry Deals Boost to £16.8 billion in Q2 2010
5 August 2010
PricewaterCoopers LLP report shows the merger and acquisition deals in the global metals industry have shown further improvement in the second quarter of 2010. All deals announced came to £16.8 billion.
The report indicated that merger and acquisition activity moved away from the small and middle segments of the parket towards larger transactions. During Q2, there were five metal industry ‘mega deals’, which are deals of a value of at least £1 billion. The total of these five deals accounted for more than double the value of mega deals announced in Q1 of 2010.
This increase in general activity indicates improved confidence and engagement in larger strategic acquisitions. Bob McCutcheon, the US metals leader at PricewaterhouseCoopers said, "We believe that this trend in activity is a positive indication for future deal flow, contributing to our relatively optimistic outlook for metals merger and acquisitions activity over the second half of 2010."
"In keeping with our previous expectations, steel and iron ore deals remain the primary driver of sector activity. Interest in steel and iron ore is likely to continue and may be supported by the industry movement toward quarterly iron ore pricing," said Jim Forbes, PricewaterhouseCoopers global metals leader.
For information on Forging ahead and to access the full report, including the special section on merger integration planning and capturing synergies to maximize deal value in the metals industry, visit: www.pwc.com/us/industrialproducts.