Forging ahead: First-quarter 2009 mergers and acquisitions analysis

Download Forging ahead: First-quarter 2009
mergers and acquisitions analysis
(533 Kb)

Welcome to Forging ahead: First-quarter 2009 mergers and acquisitions analysis, PricewaterhouseCoopers' report devoted to the metals industry.

We continue to analyse M&A activity in the metals industry and have been publishing new Forging ahead reports each quarter since 2008. These quarterly analyses include information on individual mergers and acquisitions for disclosed or undisclosed values, leveraged buyouts, privatisations, minority stake purchases, acquisitions of remaining interest and other important information.

The pace of global deal activity in the metals industry significantly declined in first quarter 2009 as falling end-market demand and weak commodity prices created a difficult operating environment. While overall deal activity was low during first quarter 2009, nearly all of the deals made in the metals sector came from strategic investors, similar to years past. Strategic investors accounted for 98 percent ($11.8 billion) of announced deal value during first quarter 2009, while the remaining 2 percent came from financial investors. This is consistent with deals seen by investor groups over the past two years, when strategic investors accounted for 93 percent of announced deal value in 2007 and 77 percent in 2008.

In addition to a detailed summary of M&A activity in the first quarter of 2009, this issue of Forging ahead includes a special report that addresses the effects of the national economic stimulus bill and the developments in the auto industry on the metals sector. Included in the discussion are ways in which automotive losses translate to difficulties for metals companies, as well as the companies’ efforts for long-term restructuring.