China dominates M&A deals as activity falls

The value of merger and acquisition (M&A) deals for the metals and mining industry slipped by 6.7 per cent in September compared with the previous month, according to GlobalData’s deals database.

Compared with the last 12-month average of $5.18 billion, September dropped by 63.4 per cent with the top five deals in the industry accounting for 77.4 per cent of the month’s overall value.

The Asia-Pacific region held the top value position for deals around the globe, with its total announced deals worth $1.37 billion, with Chinese companies making up $1.34 billion of the total deal value.

The combined value of the top five deals for September, $1.47 billion, was a standout for the month against the $1.9 billion overall value recorded for the industry as a whole.

Four of the top five September deals were made by Chinese companies, with Beijing Haohua Energy Resources snagging the top deal for September with its $442.81 million acquisition of Ningxia Hongdunzi Coal Industry.

The second highest-value deal was Shanxi Jinmei Distressed Equity Investment Partnership obtaining Shanxi Meijin Energy for $408.55 million.

Hunan Valin Xiangtan Iron and Steel acquiring Yangchun New Steel ($231.6 million) and Shandong Zhaojin Group acquiring Boading Technology ($129.93 million) rounded out the top five most expensive deals at fourth and fifth respectively.

Canada, however, topped the globe for deal activity, making 28 deals for the month, including Osisko Gold Royalties’ $254.73 million acquisition of Barkerville Gold Mines, which was the third highest valued deal for September.

Behind Canada, Australia made 18 deals, followed by the United States of America with 14.

In terms of volumes, North America emerged as the top region for global deals, followed by the Asia-Pacific, then South and Central America.

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