Forging ahead: Global metals industry mergers and acquisitions analysis: 4Q 2009

Forging ahead: Fourth-quarter 2009 global metals industry mergers and acquisitions analysis

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Welcome to the fourth-quarter 2009 edition of  Forging ahead, our analysis of mergers and acquisitions in the metals sector.

This quarter, the Forging ahead report takes a deeper look at innovation and its potential for accelerating the economic recovery in the metals sector. Our special report highlights the many faces of innovation and the related opportunities for driving business strategy, improving efficiencies, and increasing growth.

The fourth quarter 2009 mergers and acquisitions analysis reported that the pace of deal activity showed improvement with 32 announced deals, an increase of 11 deals from the third quarter. However, the pace of announced deal value remains mostly anemic. The $4.9 billion of total deal value announced during the fourth quarter increased from the $3.7 billion in deal value in Q3, but fell well below Q2 deal value of $63 billion.

Conditions are in place for a brighter deal market in 2010. Based on the probability of a sustained, if modest, economic recovery in key regions, higher commodity prices, and the capital market improvements, we are cautiously optimistic about the environment for metals deals looking forward.