It is uncertain how the decline in prices and weakening global demand, along with the recent strengthening of the US dollar, will affect mergers going forward. Many companies have already announced output reductions or capacity curtailments, which may mitigate some of the recent downward pressure on price. However, as the credit crisis continues, we expect strategic investors will drive most deal activity, even though the sector constituents that have recently engaged in large deals may choose to focus on merger integration, cost containment, and capacity rationalization in the near term.
How PwC can help you
At PwC we provide a full range of transaction services to help companies through this continued industry consolidation, assisting on acquisitions, divestitures, carve-outs and many other transactions. Whatever your requirement – be it Financial Due Diligence, Private Equity, Corporate Finance, Technical Accounting, Reporting and Auditing, M&A pre and post–transaction services, international tax planning or risk management – we have a team in place to assist you. We also provide cost effective solutions to help emerging players from the BRIC countries understand new metals markets, barriers and risk of entry, and challenges of doing business in new markets.