Mergers and Acquisitions Hit by Coronavirus, but Mining Stays Strong

Despite the overall downturn in mergers and acquisitions (M&A) activity due to the coronavirus pandemic, the mining sector has emerged as a bright spot.

According to a recent report by Mergermarket, global M&A activity in the mining sector increased by 20% in the first half of 2020, compared to the same period last year. This increase was driven by a number of factors, including the strong demand for commodities such as gold and copper, as well as the increasing attractiveness of mining assets in emerging markets.

The report also found that the average value of mining M&A deals increased by 40% in the first half of 2020, compared to the same period last year. This suggests that mining companies are becoming more confident in the long-term outlook for the sector, and are willing to pay higher prices for assets that they believe will generate strong returns.

The uptick in mining M&A activity is a positive sign for the sector, and suggests that it is well-positioned to weather the current economic storm. As the global economy begins to recover from the pandemic, we can expect to see continued strong demand for mining commodities, and further increases in mining M&A activity.