Metals deals: Forging Ahead 2012 Outlook and 2011 Review

2011 was a year of deal bounce-back for the metals industry

The current run-rate of over 500 metals deals a year puts deal flow at near historic high levels. Total completed deal value rose from US$26.1bn in 2010 to US$40.7bn in 2011, up 56% year on year and up 170% on its US$15.1bn 2009 trough.

Looking ahead, caution will be the watchword

Uneven and uncertain world demand forms the backdrop for metals deal making in 2012. All eyes will be on how the eurozone crisis plays out, the stability of the US economy, and developments in the Chinese real estate and construction sector. These factors will play a significant role in determining the momentum of future deal flow. If they are positive, we expect momentum to be maintained with a number of themes underpinning buyer and seller decisions.

  • Steel consolidation set to accelerate in 2012
  • Supply chain security will continue to spur new alliances
  • Asia Pacific ‘go global’ strategies widen out

PwC perspective

Jim Forbes
“Supply chain security will be a big theme for the industry to see unfold. Metals companies will continue to seek greater certainty over raw materials and we are already seeing the emergence of manufacturer alliances which will allow companies to pool investment."

-- Jim Forbes, Global Metals Leader, PwC

 

Global Metals Deals annual review takes a look at the M&A landscape over the past year identifying the key themes and important drivers of deals activity. This year, we open our report with our discussion of the outlook for the year ahead and identify some of the main themes we expect to be at work.