Metals' M&A activity rises in Q3
Metals' merger and acquisition (M&A) activity picked up in the third quarter even though the global steel tensions were moving up, especially between China and the US, as well as the increasing interest rate.
Total M&A deal volume went down by 9% compared to the second quarter 2018. However, the total M&A deal value increased by 78% compared with the previous quarter. The US tariffs on steel and aluminum resulted in great margin pressure for smaller producers and downstream manufacturers. However, it also brought more chances for the investors to become competitive and to make profits.
Barrick Gold Corporation was purchasing Randgold Resources Limited with the amount of US$6.1 billion. The M&A value of steel and aluminum deals in the third quarter went down by 22% and 81%, respectively compared to the deal in the second quarter. In addition, the total M&A deal values reached US$16.1 billion for the quarter.
