Tag archives: commodities prices

Commodity price declines present M&A opportunities for well-capitalized industry players or private equity firms

It is not uncommon to see acquisition opportunities arise at the bottom of a commodity price cycle, as low prices put pressure on companies to sell assets at revised down prices, in order to raise cash to fund projects or offset revenues lost to low commodity prices. Low oil and gas prices therefore promise to make 2015 a year in which well-capitalized players find opportunities to invest or grow in the oil and gas industry.

The stunning decline in oil prices since June of 2014 has been precipitated by a number of factors. On the supply side, unprecedented levels of … Continue Reading

A marked decline in mining M&A

A recent article published by Bloomberg explains that the recent plunge in commodities prices has forced many big players in the mining industry to cut back on their spending: copper and zinc have decreased in the midst of speculation of an economic slowdown in China, and gold has plunged 24 percent, placing it on course for its first annual decline in over a decade.

With major mining companies focused on reducing debt and improving their balance sheets, mining M&A valued under $1 billion has fallen to an eight-year low.

Bloomberg data reveals that there were only 76 takeovers of mining … Continue Reading