Global metals M&A deals insights:

Q4 2016 update
 

Executive summary

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.

metals deal value and volume

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Global metals M&A deals insights: Q4 2016 update

Related documents:

metals deal value and volume data
metals deal disclosed value

Key trends/highlights

  • Deal value increased by 12% to $12.9 billion this quarter, bringing the total deal value in 2016 to $40.2 billion, 40% lower than in 2015.
  • Deal volume increased by 38% to 29 this quarter, bringing the total deal volume in 2016 to 91, 15% lower than in 2015.
  • Both deal volume and deal value were driven by acquisitions in the Steel category in 2016.
  • There were six megadeals (deals > $1.0 billion), totaling $8.4 billion. 
  • While financial investors share of M&A activity increased by 22% from last quarter, strategic investors continue to drive deal value in Metals M&A. Over the past three years, 72% of transaction value came from industry participants.
  • The Asia & Oceania region continues to dominate M&A activity, representing 81% of total deal volume in 2016.

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:


Global Metals M&A Deals Insights: Q4 2016 update.

Contact us

Brian Kelly
US Metals Deals Leader
Tel: +1 (216) 875 3121
Email

Michael Tomera
US Metals Leader
Tel: +1 (412) 355 6095
Email

Jock O┬┤Callaghan
Global Metals Leader
Tel: +61 (3) 8603 6137
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