Led by three megadeals, 2018 was a big year for M&A in the metals space, with total deal value of $53.4 billion, compared to $28.1 billion in 2017. While these megadeals drove increased average deal size, the various tariffs imposed on and impacting steel and aluminium (and other downstream products) may have negatively impacted M&A momentum. This may be evidenced by overall deal volume declining in 2018 and favoring within-border transactions compared to 2017. While likely only temporary, the uncertainty caused by the heated geopolitical climate may impact M&A into 2019.
“Recent talks between the United States and China aimed at easing trade tensions and the impending ratification of the United States-Mexico-Canada Agreement may trigger some optimism and encourage metals companies to aim for sustained growth through acquisitions, joint ventures and strategic partnerships which were less plausible in 2018.”
Metals Deals Leader, PwC US
Tel: +1 (216) 875 3121
US TAS Market Leader, Midwest Market, PwC US
Tel: +1 (412) 355 6095
Global Metals Leader, PwC US
Tel: +61 (3) 8603 6137