Mining megadeals are falling-2

dry washer On a regional basis, Asia and Oceania continued to drive local deal value and volume in the first half of the year with 35 deals of $50 million or more for a total value of $18.55 billion. Seventeen of those deals were based in China. India has also seen four local deals and one cross border deal in the first half of this year. The nation is becoming a major contributor to the local steel industry. It was announced in February that India's Sesa Goa, a 55.1% owned unit of Vedanta Resources, would be acquiring India's Sterlite Industries, a manufacturer of nonferrous metals products in an all-stock $3.91 billion transaction. Meanwhile, also made public in February was the announcement of China's Baoshan Iron and Steel Company that it would sell its unprofitable stainless steel and specialty steel assets to its parent Baosteel Group for $1.02 billion. In January it was announced that a consortium including South Korean steel manufacturer POSCO will buy 30% of the Roy Hill iron ore project in Australia from Hancock Prospecting for $1.5 billion. The investment will give the consortium 16.5 million tons of iron ore per year from the mine. In North America there were six local deals in the first half of the year, three of which, valued at $1 billion, took place in the second quarter. Noting that the dollar has been rising in value recently, particularly against the euro, PwC suggested U.S. acquirers "may be able to pursue relatively cheap acquisitions in the near future." mining equipment component parts Meanwhile, financial investments continued to decline as a percentage of all deals during the second quarter. During the second quarter approximately 93% of transactions worth $50 million or more involved strategic investors, according to PwC. "As noted in the last quarter, strategic investments remain strong, and we are seeing an increase in the volumes of these deals as metals companies (and other strategic investors) seek additional synergies and cost savings opportunities," said the PwC analysis. "For example, strategic investors generally have longer investment horizons, which support their high involvement compared with financial investors," PwC noted. "Also, upstream assets continue to appeal to strategic acquirers." "Strategic acquirers may see upstream acquisitions as a way to gain control over input costs and to ensure a stable, adequate supply of raw materials." gyratory crusher application