The number of mining mergers and acquisitions has dropped by 31% to 135 deals with a 67% decline in their value to 6.7 billion dollars, during the first quarter of this year, according to a report by a professional survey data institute. The institute’s global mining and metals transaction leader said that the completed deal numbers of the first quarter don't really reflect what we are seeing in the market as the rate of announced and yet-to-be-announced deals has increased.
There remains a backdrop of caution; however, the mood is much more positive. We are beginning to see that translate into confidence to do deals, as reflected by the large pipeline of announced acquisitions, particularly in the gold sector. The mining and metals sector report stated that, despite a muted start to the year, mining and metals firms show more interest in the deals globally in the next 12 months, based on survey of more than 1,600 executives, including 128 in the mining and metals sector.
Nearly 60% of the mining and metals sector respondents expect the deal volumes to improve during the period with around 53% of the companies surveyed having a pipeline of two to three deals. The gradual increase in deal volumes will be driven by larger miners streamlining their asset portfolio, financial buyers and consolidation among small and mid-tier mining companies.
Facing this situation, the global mining industry and especially the Chinese mining machinery enterprises like our company which manufactures best sellers such as crushers, grinders and ore beneficiation machines should try hard to make new policies to adjust the current developing mode in order to adapt to the latest changes in the modern mining market.
