Mergers and acquisitions activity in the mining industry The total value of mining M&A halved in 2009. Highlighting the significance of this decline was the fact that the biggest deal in 2009 would not have made it into a list of the top 10 deals by value in 2008. Overall, deal value fell from US$153.4 billion in 2008 to US$77.1 billion in 2009.
The principal driver of M&A activity shifted from business growth to business survival, as market participants looked to shore up balance sheets during the global economic downturn. Those with access to free capital in these tighter markets bought cheaply, if they were brave enough to make an acquisition.
Despite the sharp fall in deal values in FY09, Chinese investment was notably strong, accounting for three of the top 10 deals by value in 2009. Chinese firms looked for resource assets with the aim of securing long term supply.
Throughout the year 'Mega Deals' were discussed by some of the industries largest players, however complexities ranging from geography, national interest and diverse shareholder bases impeded the execution of such large deals.
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