Mining megadeals are falling-1

While the second quarter saw declines in both deal volume and value in mergers and acquisitions in the global metals sector, a PwC report made public Thursday revealed that acquirers from emerging and developing economies accounted for 65% of all deal making valued at $50 million or more. The number of deals worth $50 million or more in the global metals sector fell during the second quarter of the year from 41 deals during the second-quarter 2011 to 20 deals with a total deal value of $8.9 billion reported during each quarter. select grind mill Although six mega-deals each valued at $1 billion or more were announced in the first quarter of the year, only one mega-deal was announced during the second quarter. Chongqing Iron & Steel agreed to acquire a new iron and steel production base in the Changshou from corporate parent Chongquin Iron & Steel (Group) Company Limited for $2.8 billion in shares and cash. If the current low levels of M&A activity continue through year-end, PwC warned the global metals sector could experience a year-over-year decline of nearly 20% in deal value. "Unless and until prices and demand improve, the deal environment is likely to remain constrained," cautioned PwC Global Metals Leader Jim Forbes and U.S. Metals Leader Sean Hoover in the publication, "Forging ahead." plaster processing equipment The double-dip recession in the UK and parts of the Eurozone, as well as softness in key end-markets, such as construction contributed to the decline in deal-making in the second quarter, said PwC U.S. Industrial Products Leader, Robert McCutcheon. "Commodities pricing is a potential concern," said PwC. "Prices for base metals are generally expected to continue to decline through the end of 2012." "Overcapacity also remains a problem, as new capacity continues to come online from developing and emerging economies," the report noted.