Ernst & Young (EY) expects an upward trend in mergers and acquisitions (M&A) and capital raising activity to continue in 2017, the company outlined in its latest mining and metals report.
It anticipates that the coal industry will be a key driver in this growth after the volume of M&A deals increased slightly in 2016, with Australian transactions playing a role.
“Almost all of the major diversified and largest energy pure-players successfully closed divestments of coal assets during the year, particularly in Australia and the United States,” EY reported.
“With more Australian coal assets up for sale and potential coal reforms in the US, we are expecting to see interest from traders and private equity in acquiring opportunistically on low valuations.”
EY developed the following infographic summarising its report findings: