Mining Deals Will Hit Record Levels in Era of Super Consolidation

Source:

In their report, Mining Deals 2007 Annual Review, PricewaterhouseCooper's Global Mining Deals Team said, 2008 looks set to see mining deals reach very high record levels as super-consolidation takes place in the market." Despite the credit crunch, the report finds "little evidence of a slowdown in [mining] deal activity."

A PricewaterhouseCoopers report released today suggests that landmark M&A deals may reshape the top-tier mining companies this year as consolidation will continue to be a strong deal driver among mid-tier and smaller companies.

In their report, Mining Deals 2007 Annual Review, PwC's Global Mining Deals Team said, 2008 looks set to see mining deals reach very high record levels as super-consolidation takes place in the market." Despite the credit crunch, the report finds "little evidence of a slowdown in [mining] deal activity."

PricewaterhouseCoopers advises that 2008 will be "the year of super-consolidation as the giants of the mining and metals sectors seek combination that will increase their worldwide scale." This consolidation trend may include also players from China and Russia. The report indicates that state-owned enterprises and companies not immediately associated with mining will continue to influence the strength of the mining M&A market...

The study noted that exploration costs are at all-time highs, permitting takes longer, and mining companies are facing skills' shortages. "These are significant barriers to meeting what is a major upturn in world demand."

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