Forging Ahead: Global Metals Deals 2013 outlook and 2012 review

Mega metal deals grind down in 2013 as bite size deals take off

  • PwC model forecasts an increase of 32.1% in (announced) deal numbers, 40.2% in value for 2013
  • 2012 deal value 203% higher than 2009 but CEOs remain cautious about investing
  • Asia dominated 2012 as Americas and Europe markets shrank
  • Mega deals will dwindle as bite size deals predominate

In our annual in-depth metals M&A review and forecast, Forging Ahead’s headline trend is for a continuing recovery from a post credit-crunch low, but a recurring theme across all regions this year is the focus on select, small to medium sized purchases rather than mega acquisitions. Internal cost cutting will be a top priority for CEOs with caution being the 2013 watchword amid volatile economic times and energy prices.

Jim Forbes, global metals leader, PwC, said:
“There is no doubt that the industry is facing some of its toughest challenges yet, as companies battle the headwinds of ongoing economic uncertainty and unpredictable costs around raw materials and energy. On the surface, we are still seeing some mega-deals, but they are fewer. If we created a top 10 of the deals announced and done in 2012, just half would have been valued above US$1 bn.“

To access the publication, press the "download" button to the right of this text and should you have any questions, our contact details are listed on the right of this page.