Ken Su talks metals M&A with the South China Morning Post

22/03/2016

Ken Su from our Canadian China Business Network group recently offered his perspectives to the South China Morning Post regarding the drop in mergers and acquisitions (M&A) activity within the global metals industry, despite record levels of global dealmaking in general. As announced in our recent report, Metal Deals: Forging Ahead 2016 outlook and 2015 review, deal value dropped 32% year on year, from US$16.8bn in 2014 to US$11.4bn in 2015. 

With his recent experience as the PwC China/Hong Kong Mining and Metals Leader, Ken attributed challenges such as overcapacity, production costs and environmental compliance issues as key reasons for the decline. However, “A key factor that would drive an uptick in acquisitions in China’s steel industry is a recovery in demand both in China and in overseas markets where China is seeking to win construction projects as part of Beijing’s Belt & Road initiative,” Ken said.

The Belt and Road Initiative is a development strategy and framework proposed by People's Republic of China that focuses on connectivity and cooperation among countries, primarily in Eurasia. The strategy underlines China's push to take a bigger role in global affairs, and its need to export China's production capacity in areas of overproduction such as steel manufacturing.

Contact Ken Su, read the full South China Morning Post article, or download the report.

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Ken Su
National Leader, China Business Network, PwC Canada
Tel: +1 604 806 7660
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