Latest Expert Exchange Queries

Make your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: cpt :: Central Excise rule to resale the machines to a new company :: list of goods taxed at 4% :: VAT RATES :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARDS :: ACCOUNTING STANDARD :: TDS :: articles on VAT and GST in India :: VAT Audit :: empanelment :: due date for vat payment :: TAX RATES - GOODS TAXABLE @ 4% :: form 3cd :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes
 
 
Mergers and Acquisitions »
 Telecom M&As mean better spectrum utilisation, services: Govt
 Vodafone India-Idea Cellular merger deal gets CCI nod
 Surge in due diligence activity brings flood of business to big four
 As Reliance rolls out Jio Phone for 'free', mergers among smaller telcos may accelerate
 Building market institutions can help M&As move faster
 How corporate mergers and acquisitions impact small investors
 Merger control triggers and thresholds in India
 Centre eases pre-merger filing normsa
 Mergers and Acquisitions in Indian banking sector not threat for fintech players
 This part of our journey is value discovery: Kumar Mangalam Birla
 Health care mergers, acquisitions lead surge in global deals

M&A deal activity in global
May, 07th 2010

Merger and acquisition (M&A) deal activity in the global metals industry indicates that the volume and value of deals announced in the first quarter of 2010 improved moderately from the quarterly lows of 2009, according to the PricewaterhouseCoopers.

In the first quarter of 2010, the 21 deals announced rank above the three-year quarterly low of 17 deals announced in both the first and second quarters of 2009, although it is down from the 34 deals announced in the fourth quarter of 2009. Additionally, the $5.9 billion deal value announced in Q1 2010 remains above the three-year quarterly low of $4.6 billion in the third quarter of 2009. While deal totals have not yet fully recovered from the downturn, the environment is becoming more conducive to deal activity in the metals sector.

After a relative pause in mega deal activity in the metals sector during 2009, these deals began to reemerge in Q1 2010. Two mega deals were announced during the first quarter of 2010, exceeding the pace of 2009.

This continuation of mega deal activity provides evidence that some acquirers are ready to engage in deal making at the higher end of the value spectrum. Supporting this are higher commodity prices, improved access to capital, and greater confidence in the strength in the recovery, said Robert W. McCutcheon, U.S. metals leader, PricewaterhouseCoopers. We believe that these factors have also contributed to the increased interest in controlling stakes, a trend that matches our prediction in the fourth-quarter 2009. Looking forward into 2010, the sectors M&A flow will likely continue to grow.

Entities from emerging and developing economies appear to have increasingly become more aggressive as acquirers of metals targets. The large increase in the proportion of deals involving these acquirers has been driven by greater involvement from Chinese acquirers. In 2009, 38 percent of acquirers were Chinese entities. In the first quarter of 2010, this proportion grew to a majority, 57 percent, of acquirers.

"Globally, the relative sense of urgency to engage in new deals is likely greatest for steel companies, which face a consolidated base of iron ore suppliers. This could lead to additional horizontal mergers among steel constituents or backward integration," said Jim Forbes, PricewaterhouseCoopers' global metals leader.

Although many strategic buyers have been slow to resume their M&A activities, we believe it is only a matter of time before these acquirers look more seriously at potential growth opportunities. A more stable global economy, generally supportive capital markets, and improved financial positions should encourage these entities to enter the deal market.

The regional distribution of deals by acquirer region is highlighted by the influence of Chinese deals, which drove Asia & Oceania acquirer totals in the quarter. In the first quarter of 2010, four of the five largest deals and 12 of the 21 total deals involved Chinese acquirers. This regional distribution of deal activity is unlikely to change significantly through the balance of 2010, as emerging-market entities in Asia & Oceania continue to fuel much of cross-border activity among metals companies.

M&A due diligence in a recovering economy
The first quarter Forging ahead report takes a closer look at the role of M&A due diligence in a recovering economy and the impact it will have in the metals sector. As the global economy begins to recover, deal making might offer the leverage metals companies need to push ahead of the competition. It will be the companies with strong balance sheets and robust cash reserves that are in the best position for strategic merger and acquisition opportunities.

To make the right deal, metals companies must consider how two years of economic contraction have altered the balance of supply and demand within the value chain, as well as how it has significantly changed and elevated the importance of due diligence. Healthcare, climate change, commodity prices, pension plan structures, changing tax laws, company culture and the role of human resources must be factored into today's due diligence process.

M&A activity inevitably generates a certain amount of immediacy, so it pays to be prepared. Companies that might be rusty in the area of due diligence because few (if any) deals were completed during the past two years may need to dust off their existing processes and make sure the right resources are in place so they are ready when opportunity knocks.

For information on Forging ahead and to access the full report, including the special section on innovation and its potential for stimulating recovery in the metals industry, visit

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Bath SEO Company Birmingham SEO Company Bradford SEO Company Brighton and Hove SEO Company Bristol SEO Company Cambridge SEO Company Canterbury SEO Company Carlisle SEO Company Chester SEO Company Chichester SEO Company Coventry SEO Compan

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions