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PwC: 2Q oil and gas M&A activity strongest in 5 years

Posted on 31 July 2014 by VRS  |  Email |Print

The US oil and gas industry experienced a substantial rise in mergers and acquisitions during the second quarter, according to a quarterly report by PwC US Energy Practice.During the 3-month period ending June 30, 54 oil and gas deals took place with values greater than $50 million, accounting for $42.2 billion, compared with 47 deals worth $30.3 billion during last year’s second quarter.
The upward movement is largely attributed to an increase in megadeals, with 12 occurring worth a combined $30.8 billion—73% of total deal value—due to larger oil and gas companies divesting more valuable assets. There were just five megadeals during the first quarter. “Over the past 3 months, we continued to see companies looking to realign their portfolios and divest noncore assets, which provided opportunities for acquirers with cash and access to capital,” said Doug Meier, PwC’s US energy sector deals leader………………………………………..Full Article: Source

Commodities Today: The Next M&A Targets In The Utility Sector

Posted on 24 June 2014 by VRS  |  Email |Print

Readers know that we watch numerous areas within the commodity arena as well as industries that either have an impact upon, or are impacted by commodity names. Over the last year or two, we have spent considerable time analyzing utility names due to the low rate environment for bonds and our need to add stability to our portfolios after the big run-ups in some of the oil names we have purchased.
We have looked to diversify across the industry, using some of the larger names to get 4%-5% yields while looking to the small to midsized names as potential buyout candidates down the road………………………………………..Full Article: Source

Food Replacing Oil as China M&A Target of Choice: Commodities

Posted on 02 June 2014 by VRS  |  Email |Print

After spending the past decade and more than $200 billion acquiring mines and oilfields from Australia to Argentina, China’s attention is turning to food.
The world’s most populous nation is confronting a harsh reality: For every additional bushel of wheat or pound of beef the world produces, China will need almost half of that to keep its citizens fed…………………………………….Full Article: Source

Global Agribusiness Set for More Deals

Posted on 16 May 2014 by VRS  |  Email |Print

Singapore-listed Olam, one of the world’s biggest traders in commodities such as nuts, cotton, coffee and cocoa, reported its third-quarter earnings on Thursday–net profit more than doubled from the previous year to 396.1 million Singapore dollars ($316.8 million).
In March, Singapore state investment fund Temasek Holdings Pte. Ltd. made an offer as part of a consortium to buy the remaining 47.5% it doesn’t already own of Olam for about $2 billion, one of a series of mergers and acquisitions moves in the commodities space globally in recent months………………………………………..Full Article: Source

Mining M&A may double with China buying again

Posted on 09 May 2014 by VRS  |  Email |Print

China, the world’s biggest buyer of metals, is back on the hunt for acquisitions, triggered by a decline in prices and a shift in government policy. Chinese demand for assets may help fuel a doubling in the number of mining deals worldwide this year, according to Jay Leary, law firm Herbert Smith Freehills’s joint global relationship partner for BHP Billiton Ltd., the world’s biggest miner. Copper, iron ore and coal are the top targets, he said.
“Over the past six weeks we have seen a significant step- change in the amount of M&A activity in the mining sector,” Leary said in an e-mail. “Over the next year, we would expect Chinese investors to represent a material proportion of mining global transactions, perhaps as much as 30 percent of transactions.”……………………………………….Full Article: Source

Global metals M&A drops to lowest level since 2008 - Study

Posted on 29 April 2014 by VRS  |  Email |Print

Quarterly mergers-and-acquisition activity in the global metals market dropped to its lowest level since 2008 as over-capacity and weak pricing, particularly in the steel segment, remains a concern among buyers, consultancy and accountancy firm PriceWaterHouseCoopers said Monday.
During the first quarter of 2014, there were 13 transactions valued at $50 million or more, totaling $3.3 billion–a 78% decline in deal value from the fourth quarter of 2013, which registered 20 deals worth $15.1 billion, PwC said in its quarterly report. PwC’s M&A metals analysis comprises deals announced in the steel, iron ore, aluminum, copper, nickel and other-non precious metal sectors………………………………………..Full Article: Source

World’s two largest gold miners in talks to merge

Posted on 23 April 2014 by VRS  |  Email |Print

The world’s two largest gold miners, Barrick and Newmont, have been in talks to merge over the past week, highlighting the difficult environment for miners since shares started falling in 2011. A merger would create a $30bn super-company likely to clear antitrust hurdles because it would only account for 13% of global mine production, well below the 35% threshold Canadian antitrust regulators care about.
At the same time, Goldcorp, Yamana and Agnico-Eagles are all looking to takeover Osisko Mining Corp, a Canadian junior miner. With gold prices down, the margins for these miners continue to be depressed, leaving M&A as one of the few avenues to pursue growth………………………………………..Full Article: Source

China Minmetals to buy world’s biggest copper mine

Posted on 16 April 2014 by VRS  |  Email |Print

Minmetals China announced in April 14, that it has put pen to an agreement to buy Glencore Xstrata’s Las Bambas copper mine project in Peru for 5.85 billion U.S. dollars. The project marks the largest external metal mining purchase by a Chinese enterprise.
Located in the Apurimac region in southern Peru, the Las Bambas project is the largest copper mine under construction in the world. On completion, it is expected to produce about 450 thousand tons of fine copper each year. Post-acquisition, China Minmetals will become the largest Chinese enterprise in the the production of copper, and squeeze into the global top 10 of copper producers………………………………………..Full Article: Source

Global commodity traders get deal fever

Posted on 14 April 2014 by VRS  |  Email |Print

Big changes are under way among global energy and food commodity traders, with a flurry of first-quarter acquisitions and leadership moves that cover Asian, European and North American companies.
Last month, Swiss firm Mercuria Energy stepped closer to joining Vitol, GlencoreXstrata and Trafigura at the top of the independent energy and metals trading hierarchy, following its $US3.5 billion purchase of US investment bank JP Morgan’s physical commodity operation………………………………………..Full Article: Source

Meet the Swiss traders who just bought JP Morgan’s commodities business for $3.5 billion

Posted on 21 March 2014 by VRS  |  Email |Print

A global commodities giant in less than a decade. That’s where Mercuria Energy Group is headed. Launched in 2004 by former Goldman Sachs traders Marco Dunand and Daniel Jaeggi, the Geneva, Switzerland-based company was the sixth biggest commodities firm last year, with revenues of $98 billion.
With today’s news that Mercuria will purchase JP Morgan Chase’s commodities business for $3.5 billion, it’s likely to overtake Koch Industries and move up a spot………………………………………..Full Article: Source

Metals M&A to remain in low gear during 2014: PwC

Posted on 06 March 2014 by VRS  |  Email |Print

In fact, M&A activity in the Asia Pacific region, now account for 61% of all deal value globally, compared to only 19% in 2011, according to PwC’s new report, ‘Metals Deals: Forging Ahead 2014 outlook and 2013 review’.
Globally, deal numbers fell 30% year on year with volume touching 2009 levels. In value terms, deal sizes fell 24% year on year but the dip was not as sharp as the slide in volumes. In 2013, total deal value in metals space was $34.8billion, significantly higher than $15.1 billion in 2009. Low growth combined with continued global overcapacity in production does not augur well for strong recovery in metals M&A in 2014, the report said………………………………………..Full Article: Source

M&A in the metals sector at an 8-year low

Posted on 21 February 2014 by VRS  |  Email |Print

Merger and acquisition activity in the metals sector plunged 30 per cent in 2013 to an eight-year low, as slow global growth, falling prices and production overcapacity made it hard for buyers and sellers to agree on valuations.
As the commodities markets slumped last year, just 357 M&A metals deals were completed, compared to 507 in 2012, according to a report by PwC………………………………………..Full Article: Source

Swiss firm Mercuria in talks to buy JPMorgan’s commodities unit

Posted on 07 February 2014 by VRS  |  Email |Print

The Mercuria Energy Group, a fast-growing energy and commodities trading company, is in exclusive talks to acquire the physical commodities business of JPMorgan Chase, according to a person familiar with the discussions.
JPMorgan announced in July that it was exploring strategic alternatives, including a possible sale or spinoff, for the business, which deals in commodities like metals and oil. The business holdings include trading desks and warehouses to store metals………………………………………..Full Article: Source

Global mining, metals M&A activity to pick up in 2014 — Study

Posted on 03 February 2014 by VRS  |  Email |Print

Deal-making across the global metals and mining sector is set to pick up in 2014 following a seven-year low in mergers and acquisitions volume last year, said consultancy and accountancy firm Ernst & Young. The pickup in activity likely will be driven by improving economic sentiment, healthier balance sheets among the large miners, and the presence of private funds with more than $10 billion looking to invest in the mining sector, Ernst & Young said.
M&A activity in the global mining and metals sector reached 703 deals valued at $124.7 billion in 2013, the consultancy said in its mining and metals mergers, acquisitions and capital-raising report. Excluding the all-share merger of Xstrata and Glencore, deal volumes and value were down 25% and 16% year-on-year to 702 and $87.3 billion, respectively. This marks the lowest number of deals in the sector since 2006 and the lowest global deal value since 2009………………………………………..Full Article: Source

Financial Technologies sells Singapore commodities bourse to ICE

Posted on 20 November 2013 by VRS  |  Email |Print

Embattled Financial Technologies (India) Ltd is selling its Singapore Mercantile Exchange (SMX) unit to Intercontinental Exchange Group Inc for $150 million.
Analysts had expected Financial Tech would shed some of its ownerships in exchanges to protect its core trading platforms business as the company faces regulatory scrutiny that has sent its shares down more than 80 per cent this year……………………………………Full Article: Source

Outlook for mining sector M&A

Posted on 04 November 2013 by VRS  |  Email |Print

It’s no secret that mergers and acquisitions (M&A) activity in the mining sector is in the dumps. According to PWC, deal volume in the first half of 2013 declined 31% as compared to the same period last year. Deal value declined 74%. Excluding Glencore’s $54 billion acquisition of Xstrata in 2012, deal value is still down 21%.
A recent Bloomberg article noted that the volume of acquisitions valued at less than $1 billion is at an eight-year low while the volume of deals in Q3 was the lowest since Q4 of 2004. However, some deals are taking place and in order for speculators and investors to capitalize, they will need to keep a discerning eye, just like potential suitors………………………………………..Full Article: Source

Cost-conscious miners are not looking to splash the cash on M&A

Posted on 09 September 2013 by VRS  |  Email |Print

How things change. This time last year, the biggest story in mining was the noise around commodity trading giant Glencore’s $54bn (£35bn) tie-up with mining group Xstrata, the largest yet seen in the sector.
After the deal was announced in February 2012, the merger finally completed in May this year. That did not mark the end of big M&A however. This month alone, Vodafone has sealed the $130bn sale of its stake in US mobile network Verizon Wireless, the world’s biggest deal for more than a decade, and we have also had Microsoft’s $7.2bn purchase of Nokia’s phone business………………………………………..Full Article: Source

JP Morgan buys OTC commodity derivatives business from UBS

Posted on 07 August 2013 by VRS  |  Email |Print

U.S. bank JP Morgan Chase & Co , which plans to stop trading in physical commodities, has bought the over-the-counter business in commodity derivatives of Switzerland’s UBS AG, the banks said on Tuesday.
The deal excluded precious metals and index-based trades, but included hedge positions on financial exchanges, UBS said in a statement. No financial details were released………………………………………..Full Article: Source

Mining M&A activity down in 2013

Posted on 02 August 2013 by VRS  |  Email |Print

The first half of 2013 has seen a lower level of mergers and acquisitions according to an Ernest & Young report. In its latest report, E&Y state that global M&A in mining has been subdued so far. It explained that instead “management teams across the industry are focused on cost containment, margin improvement and asset optimisation at the expense of high risk capital expenditure, acquisitions or exploration”.
The report states that internationally, investors’ confidence in mining and metals, which have been particularly sensitive to short term economic changes…………………………………..Full Article: Source

ICBC in talks to buy commodities trading business

Posted on 01 August 2013 by VRS  |  Email |Print

China’s state-controlled Industrial and Commercial Bank of China is in advanced talks with South Africa’s Standard Bank to buy its London commodities trading business for around US$500 million, a person familiar with the matter said Wednesday.
ICBC, China’s largest bank by assets, has been pursuing such a deal for months. Late last year, The Wall Street Journal first reported the bank held talks to acquire a 60% stake in Standard Bank’s London-based commodities and foreign-exchange business with the aim of expanding that to 80% ownership over time, people familiar with the situation said………………………………………..Full Article: Source

Global oil and gas M&A activity sinks to bottom since 2009

Posted on 23 July 2013 by VRS  |  Email |Print

Energy players are maintaining a cautious stance while expanding operations or joining with other players. According to a report from PLS Inc and Derrick Petroleum Services, global mergers and acquisition activity in the energy sector in 2013 has been one of the lowest since 2007, with exception of the 2009 aftermath of financial crisis.
All put together, in 2013 so far, total deal value was reported at $45.8 billion, which is much below last year………………………………………..Full Article: Source

Oil and gas M&As; reached $25 bln in Q2 2013

Posted on 16 July 2013 by VRS  |  Email |Print

PLS Inc., a Houston-based research, transaction and advisory firm, in conjunction with its international partner, Derrick Petroleum Services, announced that global M&A oil and gas upstream deal activity for Q2 2013 totaled $24.9 billion in 141 separate transactions with deal values disclosed.
This is up 19% from Q1 totals of $20.9 billion in 117 deals and down 12% from Q2 2012 totals of $28.4 billion in 173 deals. After a torrid deal pace in Q4 2012 of $138 billion in 223 deals, the first-half 2013 deal value ($45.8 billion) represents the lowest six-month period since at least 2007 while the first-half 2013 deal count (258 deals) is second only to the first half of 2009 (184 deals for $65 billion)………………………………………..Full Article: Source

Indian Commodity Exchange, Universal Commodity Exchange in talks for merger

Posted on 25 June 2013 by VRS  |  Email |Print

Merger talks have surfaced in the decade-old commodity futures market. Universal Commodity Exchange, promoted by Commex Technology, owned by IT entrepreneur Ketan Sheth, is learnt to have called on R-ADA, anchor investor through Reliance Exchange Next, in loss-making Indian Commodity Exchange (ICEX), for a possible merger, sources said.
However, the talks did not progress to a conclusive state, according to a person aware of the discussions. Ketan Sheth’s phone was switched off while Sanjay Saksena, ICEX CEO, could not be contacted immediately……………………………………….Full Article: Source

EU set to clear ICE’s $10bln NYSE takeover

Posted on 18 June 2013 by VRS  |  Email |Print

European regulators have approved IntercontinentalExchange’s $10bn cash and shares deal to take over NYSE Euronext , a move that will allow the creation of one of the world’s largest derivatives exchanges.
Two people familiar with the matter told the Financial Times that a probe into the deal concluded that the two global exchanges were complementary to each other and did not breach competition rules………………………………………..Full Article: Source

Mining M&A appetite restrained in favor of smaller, lower-risk deals—E&Y

Posted on 13 May 2013 by VRS  |  Email |Print

Despite their more optimistic view of the global economy, an Ernst & Young survey of 193 mining and metals sector executives finds only 24% are focused on mergers and acquisitions. Those surveyed anticipate 91% of mining and metals M&A deals will be below US$500 million in value.
“Instead, companies are opting for lower risk organic growth, optimizing capital structure and strategic divestments,” said E&Y in its latest Global Capital Confidence Barometer. “For those among which M&A is still a priority, smaller bolt-on acquisitions are preferred.”………………………………….Full Article: Source

Oil spill regulations to result in energy company mergers

Posted on 07 May 2013 by VRS  |  Email |Print

A raft of mergers in the US oil sector has been predicted as smaller companies will find it difficult to comply with new regulations introduced after BP’s Macondo oil spill in the Gulf of Mexico.
A wave of merger and acquisitions (M&A) in the US oil and gas sector is in prospect, as smaller players struggle to comply with new rules introduced after BP’s Macondo oil spill in the Gulf of Mexico………………………………………..Full Article: Source

NYSE Euronext to sell its 4.79pct stake in MCX

Posted on 07 March 2013 by VRS  |  Email |Print

NYSE Euronext, which operates the New York Stock Exchange, is selling its 4.79% stake in MCX, the country’s largest commodity exchange. The sale, likely to take place on Thursday, will be at a 3-5% discount to Wednesday’s closing price of Rs 1,058 a share, said a person aware of the development.
Goldman Sachs Fund is expected to be the buyer, he added. The size of the deal would be in the region of Rs 250 crore and comes after a one-year lock in period since the listing of the bourse in March last year. At this price, NYSE will make a small gain of 4-5% on its investment of Rs 240 crore in MCX in 2008………………………………………..Full Article: Source

Will we see consolidation in the gold mining industry?

Posted on 04 March 2013 by VRS  |  Email |Print

As the gold mining sector plunges to the end of a cyclical bear market, one wonders if this ongoing selling climax will precipitate a catalyst for more mergers and acquisitions in the industry. The last 12 years tells us that these transactions tend to follow the market itself but with a lag.
Peaks in M&A activity (in global mining) in terms of number of transactions and value occurred in 2006-2007 and 2010-2011 while troughs occurred in 2002 and 2008-2009. According to Ernst & Young, 2012 had the lowest number of global mining deals since 2008 and the lowest in terms of value since 2009………………………………………..Full Article: Source

Mining M&A sees the rise of a new class of investor - E&Y

Posted on 19 February 2013 by VRS  |  Email |Print

A number of high-cost mines are high cost because they have been starved of capital in recent years. As a result, Ernst & Young expects “a good number of these mines to be divested by the majors to owners with capital available for acquisition and reinvestment.”
In their report, Mergers, acquisitions and capital raising in mining and metals, 2012 trends, 2013 outlook, When opportunity knocks, who answers?, Ernst & Young observed that a key characteristic of last year’s deal activity was the increasing number of state-backed and financial investors funding the growth of mining and metals through mergers and acquisitions…………………………………….Full Article: Source

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Japan Exchange happy to talk to foreign bourses, CEO says

Posted on 06 February 2013 by VRS  |  Email |Print

Japan Exchange Group Inc. , created by the merger of the nation’s two biggest bourses, is willing to pursue an alliance or merger with an overseas exchange to drive growth, Chief Executive Officer Atsushi Saito said.
CME Group Inc. (CME), the world’s largest futures exchange, Deutsche Boerse AG (DB1), owner of the Frankfurt bourse, BM&FBovespa SA (BVMF3), operator of Latin America’s biggest trading venue, and Korea Exchange Inc. are all partners the company would be prepared to negotiate with, Saito said……………………………………….Full Article: Source

Writedowns near $50 bln as M&A haunts mine CEOs: Commodities

Posted on 31 January 2013 by VRS  |  Email |Print

The world’s biggest mining and steel companies have wiped about $50 billion off project valuations in the past year and the purge is poised to continue this earnings season as managers reassess expensive takeovers.
Anglo American Plc (AAL), Vale SA (VALE3) and Rio Tinto Group (RIO) led the writedowns as declining metal prices, rising project costs and slowing demand forced reviews. Glencore International Plc (GLEN) may write down some nickel and copper assets acquired through its takeover of Xstrata Plc (XTA), Liberum Capital Ltd. has said. BHP Billiton Ltd. (BHP) may trim aluminum operation valuations, according to Goldman Sachs Group Inc. and Sanford C. Bernstein Ltd………………………………………..Full Article: Source

Why mining M&A is on hold

Posted on 24 January 2013 by VRS  |  Email |Print

Commodity prices are rebounding, but don’t hold your breath for megadeals in mining as a new crop of CEOs takes over.
At least 20 mining chief executive officers have stepped down in the past year, many under pressure from investors and boards. Tom Albanese, CEO at Rio Tinto PLC, was the latest to leave the corner office, agreeing to step down last week as the mining giant said it would write off roughly $14 billion in the value of various assets………………………………………..Full Article: Source

Commodities upstart ICE in $8bn takeover of New York Stock Exchange $8bln

Posted on 21 December 2012 by VRS  |  Email |Print

Two centuries of independence for the New York Stock Exchange are set to come to an end after its operator, NYSE Euronext, agreed to sell itself to Inter-continentalExchange, the commodities-focused markets business, in an $8bn (£5bn) deal.
In all, the combined stock market behemoth will own 14 exchanges, along with five clearing houses, giving ICE the heft to go head to head with larger rivals such as CME, which runs derivatives and futures exchanges in New York and Chicago, and the Frankfurt-based Deutsche Börse, whose own gambit to join forces with NYSE Euronext was thwarted by European competition regulators………………………………………..Full Article: Source

A tale of 2 companies - Consolidation in the global steel industry

Posted on 04 December 2012 by VRS  |  Email |Print

It’s interesting to note that countries worldwide are scrambling to build new steel mills. It’s been reported that by 2016, approximately 100 new mills will be coming online globally. Some of the countries where mills will be added include Bolivia, Peru, Ecuador and Vietnam.
The governments of these countries, uniformly, see adding steel mills as a way to cut imports, be able to provide steel to their country’s manufacturers and stimulate their industrial development………………………………………..Full Article: Source

Takeover approved for Metal Exchange

Posted on 30 November 2012 by VRS  |  Email |Print

Regulators approved the planned takeover of the London Metal Exchange (LME) by Hong Kong Exchanges and Clearing (HKEx). This means the deal to buy one of the City’s oldest – and certainly its most unusual – trading venues could complete as early as 6 December, bringing to an end 135 years of member-ownership.
LME is one of the few venues in the world that still practises open outcry trading and visitors to its Leadenhall Street offices can still see traders enter the ring and use arcane hand signals to buy and sell copper, aluminium, lead, nickel, tin and zinc………………………………………..Full Article: Source

Global mining and metals deal values and volumes down

Posted on 29 November 2012 by VRS  |  Email |Print

Global mining and metals deal values and volumes are down, with Canadian numbers falling in the first nine months this year, advisory firm Ernst & Young’s (E&Y’s) seventh twice-yearly ‘Global Capital Confidence Barometer’ has found.
Deal values had declined by 43% year-on-year and volumes had declined by 16% year-over-year. “Our survey results reveal that only 38% of companies, down from 53% in April, are focused on growth in the next 12 months, while 27% are refocusing on business fundamentals, including cost reduction and operational efficiency,” E&Y Canadian mining and metals leader Bruce Sprague said on Wednesday………………………………………..Full Article: Source

Xstrata-Glencore merger backed by European Commission

Posted on 23 November 2012 by VRS  |  Email |Print

The European Commission has given its backing to commodities giant Glencore’s $31bn (£19.5bn) bid to take over mining firm Xstrata. But as a condition, Glencore must scrap an exclusive deal with Nyrstar, the world’s largest zinc metal producer, and sell its 7.8% stake in the firm.
Both Xstrata and Glencore shareholders have already voted overwhelmingly to merge the two companies. The deal still requires regulatory approval in China and South Africa………………………………………..Full Article: Source

“Glenstrata” fusion approved by shareholders

Posted on 21 November 2012 by VRS  |  Email |Print

Xstrata shareholders have rubber-stamped the takeover of the mining group by commodities trader Glencore to create a $70 billion industry giant. Glencore and Xstrata shareholders approved the transaction at two separate meetings in Zug on Tuesday. Completion of the deal is still subject to approvals by regulators including the European Commission.
The merger will create an international powerhouse company that will control both the extraction of many raw materials – particularly minerals – and their distribution around the globe………………………………………Full Article: Source

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Countdown begins for commodities mega merger vote

Posted on 20 November 2012 by VRS  |  Email |Print

Shareholders in commodities giant Glencore and mining group Xstrata are to vote Tuesday on a proposed $33 billion mega merger at two extraordinary general meetings near Zurich.
Glencore shareholders are first up on Tuesday at 0800 GMT at the company’s headquarters in Zug, while Xstrata’s vote is planned for 1315 GMT in the same Swiss canton. Both Swiss-based companies had been set to approve the blockbuster merger in September but the deal ran into major resistance from key Xstrata shareholders demanding better conditions………………………………………..Full Article: Source

China’s mining, metals industries pursue M&A possibilities overseas

Posted on 07 November 2012 by VRS  |  Email |Print

China’s mining and metals companies are taking advantage of global caution to seize merger and acquisition opportunities in the sector in overseas markets, experts at Ernst & Young Global Ltd said on Monday.
The first nine months of this year saw 684 deals worth a combined $76.8 billion in the global mining and metals sector. The number of deals dropped by 16 percent year-on-year, while the total value of all transactions decreased by 43 percent compared with the same period in 2011………………………………………..Full Article: Source

Mining slump, China’s M&As to the rescue

Posted on 18 October 2012 by VRS  |  Email |Print

The mining sector had enjoyed ten glorious years of soaring commodity prices and even higher demand. Yet, this was never guaranteed to last forever, as the sector would inevitably succumb to the ups and downs of the global economy.
As miners experience a sudden downturn, they should adapt to a new era of cutting costs, take less risks and debts, while mergers and acquisitions, or M&As, would become more of a necessity for some companies………………………………………..Full Article: Source

Morgan Stanley commodities talks with Qatar hit snag

Posted on 05 October 2012 by VRS  |  Email |Print

Morgan Stanley’s talks with Qatar’s sovereign wealth fund over the sale of its commodities business have run into difficulty, and the deal may need to be reworked if it is to go ahead, banking sources said.
One of the top banks in commodity trading over the past 30 years, Morgan Stanley has been in discussion for more than a year with Qatar over the sale of at least a majority stake in the energy-focused trading business, the bankers said………………………………………..Full Article: Source

$90bln global mining giant Glencore-Xstrata inches closer: Deal depends on Qatar now

Posted on 02 October 2012 by VRS  |  Email |Print

The long and winding road that has been the attempted merger between miner Xstrata and commodities trading house Glencore seems to be nearing its end. On Monday, the board of Xstrata recommended the “all-share merger of equals” to its shareholders, putting a controversial £144 million ($232 million) bonus package up for vote.
Also, Xstrata confirmed that CEO Mick Davis would lead the combined company, worth about $90 billion, for six months, only to step down (without taking a big bonus) and let billionaire Ivan Glasenberg take the reins. All eyes are now on the Qatari sovereign wealth fund, which is one of the major shareholders and will be crucial in tilting the scale to either side………………………………………..Full Article: Source

Glencore buyout ‘to be recommended’

Posted on 01 October 2012 by VRS  |  Email |Print

Mining giant Xstrata is reportedly planning to recommend that its shareholders back a revised multibillion-pound merger with commodities trader Glencore. Mining giant Xstrata is reportedly planning to recommend that its shareholders back a revised multibillion-pound merger with commodities trader Glencore.
It is understood the decision comes after a weekend of talks and will be announced on Monday, coinciding with a deadline set by the City takeover panel. The merger has turned into a long-running saga since being proposed in February, amid shareholder discontent over the terms………………………………………..Full Article: Source

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Glencore confirms new Xstrata bid terms

Posted on 11 September 2012 by VRS  |  Email |Print

Commodities giant Glencore has officially confirmed the terms of its improved merger offer to mining group Xstrata, made on Friday.
Under the new terms, Xstrata boss Mick Davis would head the combined group for six months before making way for Glencore’s Ivan Glasenberg. Glencore has offered 3.05 of its shares for each Xstrata share, up from its original offer of 2.8 shares………………………………………..Full Article: Source

Miners’ woes may prompt consolidation rush

Posted on 10 September 2012 by VRS  |  Email |Print

Media speculation that Andrew Forrest’s Fortescue Metals and Gina Rinehart’s Roy Hill iron ore project might share the costs of building a railway rather than construct separate rail lines is a sensible idea but not new.
Members of the Fortescue board have discussed the issue on a number of occasions over the past couple of years but the proposal failed to get anywhere.Still, with the first stage of the mining boom fading fast - iron ore prices are falling, costs remain too high, and raising finance is becoming increasingly difficult - a deal between the billionaires Rinehart and Forrest might not be out of the question………………………………………..Full Article: Source

Glencore set to detail $36-bln Xstrata bid

Posted on 10 September 2012 by VRS  |  Email |Print

Trader Glencore, hammering out a revised $36-billion bid for miner Xstrata in intense weekend negotiations, is set to detail its new offer to the market as early as Monday, days after proposing 11th-hour changes to save the deal.
Sources familiar with the deal said commodities trader Glencore, keen to clarify its own position but also under pressure from Xstrata and UK regulators, would publish details of the higher offer early next week………………………………………..Full Article: Source

Giant mines merger set to fall through

Posted on 03 September 2012 by VRS  |  Email |Print

Advisers to lose millions as Xstrata shareholders prepare to vote down £53bn deal with Glencore. Investment bankers working on the troubled Glencore-Xstrata £53bn megamerger will lose almost £70m in fees if, as expected, the deal collapses this week.
Big name banks working on both sides of the merger, including Citi, Morgan Stanley, JP Morgan and Goldman Sachs, were expecting to share a success fee pot of up to £82m when the deal was finalised. However, it is thought they will receive around 10 per cent of that, after shareholder Qatar Holding, which has recently built a 12 per cent stake in Xstrata, confirmed plans last week to effectively torpedo the deal………………………………………..Full Article: Source

Global metals M&A deal value could drop 20pct -PwC

Posted on 10 August 2012 by VRS  |  Email |Print

While the second quarter saw declines in both deal volume and value in mergers and acquisitions in the global metals sector, a PwC report made public Thursday revealed that acquirers from emerging and developing economies accounted for 65% of all deal making valued at $50 million or more.
The number of deals worth $50 million or more in the global metals sector fell during the second quarter of the year from 41 deals during the second-quarter 2011 to 20 deals with a total deal value of $8.9 billion reported during each quarter………………………………………..Full Article: Source

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Glencore courts Qatar as Xstrata tweaks merger pay: Commodities

Posted on 28 June 2012 by VRS  |  Email |Print

Glencore (GLEN) International Plc and Xstrata Plc (XTA), seeking to salvage the year’s biggest takeover, moved to appease dissident investors who have threatened to derail the 16 billion-pound deal ($25 billion).
Glencore yesterday met with Xstrata’s second-biggest shareholder, Qatar Holding LLC, over the sovereign wealth fund’s call for a 16 percent increase in the commodity trader’s bid, people familiar with the London talks said. Xstrata revised payments for executives intended to keep them at the combined company by adding a link to performance after holders attacked the bonuses as excessive………………………………………..Full Article: Source

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