Metals Update: Third Quarter 2010
Deloitte Corporate Finance LLC
This quarter’s Metals Update, produced by Deloitte Corporate Finance LLC (DCF), summarizes the most recent transactions along with information on the most active buyers, current transaction valuation multiples and an overview of the public market’s perception of the industry.
This quarter’s highlights include:
- Strong end-market demand from infrastructure, automotive and industrial companies at-large, especially in developing economies in the Middle East and Asia, have driven recent increases in commodities and raw materials prices.
- Increasing prices have companies in the sector aggressively searching for new sources of raw materials. As a result, recent M&A activity has gravitated toward mining, commodities and raw materials.
- 2010 M&A deal volume continues to outpace 2009 activity. The rationale for M&A activity remains strong, driven by the need amongst the steel value chain to vertically integrate and a fragmented processing and service center sector that is expected to offer synergy opportunities to consolidators.
Download the Metals Update below.