AFRICA/MIDDLE EAST – Overall deal activity in the Middle East and African metals and mining industry increased by 16.7% in the second quarter despite a slowdown in global economic, a new report by GlobalData’s deals has revealed.
According to the report by GlobalData, twenty-eight deals for the region worth $1.44-billion were made during the Q2 2020, against the last four-quarter average of 24 deals.
Of all the deal types, mergers and acquisitions (M&A) saw most activity, with 26 transactions while private equity accounted for the other two deals.
Mining deals in the global scene however, declined by $5.3-billion to $20.6-billion in the second quarter, reports data and analytics company GlobalData.
“Mining M&A values dropped by 30.5%, or $2.9-billion, in the second quarter, while there was a 24.8%, or $3.7-billion, drop in the capital raised by mining companies during the second quarter.”
The total volume of deals increased from 860 in the first quarter to 1 411 in the second, owing to an 84.9% increase in the total number of completed asset transaction deals in that quarter.
Canada, Australia, the US and the UK accounted for more than 90% of the total deal volume and more than 50% of the total deal value.
The largest of the completed deals was PT Indonesia Asahan Aluminium’s raising of $2.5-billion by offering three sets of bonds at 4.75% (due in 2025), 5.45% (due in 2030) and 5.8% (due in 2050).
According to the report by GlobalData, the top five metals and mining accounted for 98.7% of the overall value of deals in Africa and Middle East during the period.
The combined value of the top five metals and mining deals stood at $1.43-billion, against the overall value of $1.44-billion recorded for the quarter.
Northam Platinum’s $69.04-million acquisition of Zambezi Platinum came in in third place and was closely followed by the the $45-million asset transaction between B2Gold and West African Resources.
Hummingbird Resources’ acquisition of Cassidy Gold Guinea for $12.67-million closed came in at a distant fifth and closed the top five mining deals transaction deals in the Africa and Middle East region.