Australian M&A falls 49% in third quarter

26th November 2020 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

PERTH (miningweekly.com) – Australia’s top five mining and metal merger and acquisition (M&A) agreements in the third quarter of this year was valued at a combined $335.35-million, accounting for 75.4% of the overall deal value in the same period.

Analysts GlobalData’s addition to the M&A transactions included Russian gold miner Nordgold’s $247.1-million offer for ASX-listed Cardinal Resources, the $42.91-million acquisition of Millennium Minerals by Novo Resources, Auris Minerals’ $16.49-million acquisition of Sams Creek Gold, and Calidus Resources’ asset transaction with Novo Resources for $14.21-million.

Total metals & mining industry M&A deals in the third quarter was worth $444.85-million in Australia, GlobalData’s deals database has shown.

The value marked a decrease of 49% over the previous quarter and a drop of 68.4% when compared with the last four-quarter average of $1.41-billion.

Australia held a 6.2% share of the global metals & mining industry M&A deal value that totalled $7.21-billion in the third quarter of 2020.

In terms of deal activity, Australia recorded 108 deals during the third quarter, marking a rise of 33.3% over the previous quarter and a rise of 74.2% over the last four-quarter average.