After forging ahead in previous years, metals industry deal-making fell away sharply in 2008 as world demand fell and prices plummeted. The year saw a dramatic and sudden about-turn in the environment for deals. Optimism that China would continue to compensate for downturns elsewhere was replaced by increasing concern about a weakening in global demand, including China.
Metals deals 2008 reviews deal activity in the metals industry. We examine both the rationale behind the overall deal trends and look at the key individual deals. We analyse the year under review in the context of the preceding three years, and look ahead to the future direction of deal-making in the sector. We also highlight some of the critical issues for companies engaging in deal activity within the sector.
Looking ahead, we examine the effect of continuing uncertainties on deal-making in the sector. We look at the consequences of the very different environment. We consider the immediate outlook for deal-making in the sector twill remain subdued. Cash conservation will be the principal name of the game but we do not rule out, once price expectations between buyers and sellers converge and with any easing of market conditions, the prospect of a fast revival in deal activity.