Corporate activity is returning to the mining sector, as mining companies respond to changing outlooks by optimizing and focusing their project and operational portfolios and right-sizing their balance sheets — and as funds form or allocate significant capital to exploiting the opportunities that now exist in the sector.
Fueled by strong commodity prices and repaired balance sheets, mergers and acquisition (M&A) in the global mining sector has accelerated. It takes an expert to recognize and consider the variables inherent in larger transactions, bolt-on acquisitions, and cross-border deals in emerging markets.
In mining-industry M&A transactions, both buyers and sellers are at risk of not creating adequate value in acquisition or disposal. The main issues behind lack of success are:
Understanding the cause and impact of these issues can mean:
Risk and insurance due diligence reduces the level of uncertainty and reduces the risk of surprises after a deal closes. Marsh's Private Equity and M&A (PEMA) Practice provides risk and insurance advice that complements traditional financial, legal, and commercial due diligence. Our advice enables both buyers and sellers to better understand the risks in any given transaction and factor them into negotiations and the pricing of a transaction. Among the benefits we provide are: