The Global Metals industry closed 2016 with an upward trend in M&A activity. A total deal value of $12.9 billion for deals with disclosed value greater than $50 million was 12% higher than last quarter and 106% higher than Q4 2015. As global economies show signs of stabilization and metal prices begin to recover, we expect a continued positive trend in Metals M&A activity.
Deal value in 2016 was driven by M&A activity in China, as eight of the ten largest deals throughout the year were announced by Chinese acquirers. These acquisitions took on various forms and were directed at Steel, Aluminum and Iron Ore companies, among others. Nevertheless, it is important to note that, while announced, these deals have not yet closed.
The number of deals with disclosed value greater than $50 million also grew in the fourth quarter. Deal volume reached 29 deals, 38% higher than last quarter and 12% higher than Q4 2015. On average, however, deal volume in 2016 remained 15% lower than in 2015.
The majority of M&A transactions in the Metals industry continue to occur within country borders due to the high cost of transportation of heavy metal products. Over the past three years, 77% of deal activity has occurred locally.
For our full report and additional information on the Top 10 Deals announced for the year, our regional and subsector analyses, and the Outlook for this sector, please remember to download our: