Global mining M&A deals will be small and few
Mining companies' capital bases have deteriorated; they are likely neither to be acquirers nor acquired
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In this article
- Misreading the prices
- Longer times to reach production
- Reliance on government support
- Industrial response to the downturn
- 2011-13: the era of denial
- 2013-15: the era of working for lenders
- The role of asset disposals
- Bad timing
- Incomplete information
- Raising equity
- Who would be the buyers?
- Commodity-trading firms
- Private equity firms
- Sovereign wealth funds
- Positive correlation
- Risk aversion
- Lack of mining expertise
- Chinese state-owned enterprises
- Other non-Western players
- Could closures accelerate?
What is this?
This article is from the Oxford Analytica Daily Brief, which analyses geopolitical, economic, social, business and industrial developments on a global and regional basis, providing clients with timely, authoritative analysis every business day of the year. Find out more about the Oxford Analytica Daily Brief, or request a trial.
_350.jpg "A train loaded with copper cathodes travels inside the Chuquicamata copper mine, Chile (Reuters/Ivan Alvarado)")