What’s the ETA on M&As? Not 2013, analysts believe
Dec 31, 2012 | 07:00 PM
| Chris Prentice
Two major financial analysts working in various domestic metal sectors have predicted that merger and acquisition (M&A) activity will decline this year.
Sean Hoover, metals leader for PricewaterhouseCoopers LLPs U.S. industrial products practice, and Greg Eck, managing director of GE Capitals metals and mining unit, each told AMM that the M&A climate is not shaping up as a strong one in 2013.
M&A activity in the global metals and mining industry slowed dramatically last year, and the analysts said the trend is unlikely to change in 2013 as companies throughout the supply chain maintain cautious outlooks. Additionally, companies are looking to invest capital and expand, but potential sellers of existing firms expect prices that are too high for todays metal markets, the analysts said.
From talking with our metals clients, and more specifically our steel clients, the biggest concern is the general economy, Hoover said. I think ... theyre cautiously optimistic about what 2013 has in store.
Total M&A deal value in the metals sector was on track to fall 50 percent in 2012, according to a report by New York-based PricewaterhouseCoopers.....
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