Merger and acquisition activity in the global mining and metals sector picked up notably in the second quarter from the previous quarter partly due to medium-sized and large companies disposing of assets to streamline their operations and strengthen balance sheets, according to a report from consultancy and accountancy firm Ernst & Young (EY).
The value of global mining and metals deals rose 93 per cent to USD $7.8 billion in the three months ended June 30, 2016, from USD $4.1 billion the previous quarter, according to the latest data analysed by EY.
North America accounted for the greatest volume of deals out of any region at 56 — representing 54 per cent of the global deal volume due to mid-market consolidation in the gold sector there.
Asia-Pacific accounted for the highest deal value in the second quarter at USD $3.6 billion. This includes Sumitomo Metal MiningÂ’s USD $1 billion acquisition of a 13 percent stake in the Morenci copper mine in Arizona, US, but excludes the major acquisitions by China Molybdenum of Freeport-McMoRanÂ’s stake in the Tenke Fungurume operations in the Congo, and Anglo AmericanÂ’s niobium and phosphate operations in Brazil, which is due to close in the second half of this year.