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Consolidation wave - Global metals outlook

The future of the global metals industry: Part three


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Consolidation wave cover

The worldwide economic downturn has slowed the rapid rate of consolidation the Global metals industry has seen in the past few years, with mergers and acquisitions (M&A) activity grinding almost to a halt.  Companies are tightening their belts, conserving their cash, and generally taking a wait-and-see approach to acquisitions. Yet today's market presents unprecedented opportunities for buying up critical assets at bargain prices.

In the third and final part of the series of reports, "Consolidation wave: Global metals outlook", indicates that regardless of timing, two significant enabling actions are required for M&A recovery in the global metals industry. First, service centres and other customers will need to have sufficient trade financing capacity and forecast demand to make meaningful purchases. And secondly, how companies manage production levels to respond to demand and the impact on pricing.

Other highlights from the Consolidation wave: Global metals outlook report:

  • Smaller deals in US$100 million to US$500 million range expected in the short-term
  • Deals likely to be in non-core steel activities
  • Opportunistic plays for distressed assets may be the first activity level to return
  • More cross-border transactions expected as regional consolidation reaches its limits
  • Continued joint ventures and alliances expected

Download the full report " Consolidation wave - Global metals outlook" (PDF, 704 KB).

Related news release:Global metals consolidation still compelling despite slowdown says Deloitte

Previous report:
Turning the corner - Global metals outlook 2009: Part one
A regional perspective - Global metals outlook: Part two 

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