This uncertainty over future demand, together with continuing constraints on capital, are two of the greatest challenges that metals industry players face.

In the meantime, there are some attractive opportunities to be had for growth through acquisition. Based on available data and KPMG insight, we consider if and how metals companies might use acquisition strategies to boost their prospects.

Consensus appears to be that the economic cycle is past its lowest point. However, questions remain over the shape the recovery might take. Will the future be shiny, with a rapid and sustained upturn in underlying economic conditions? Or will it be more of a stop-start upturn, with small improvements in metals volumes and prices followed by falls?

This uncertainty over future demand, together with continuing constraints on capital, are two of the greatest challenges that metals industry players face. In the meantime, there are some attractive opportunities to be had for growth through acquisition. Based on available data and KPMG insight, we consider if and how metals companies might use acquisition strategies to boost their prospects.

Challenges and Opportunities
where to for M&A?

Summary points from the research undertaken and our knowledge of the industry reveal:

• Cost-cutting takes hold as revenues fall
• Vertical integration to lead new M&A 04
• Eyes on Asia
• Iron and steel to dominate deals
• Finance and state-owned investors take the lead
• Where next?

KPMG has produced this industry report by analyzing five years' worth of historical M&A data (by value and volume) and interviewing KPMG's Global Sector leads to provide an outlook perspective for M&A. This includes highlighting key regions and countries for activity, who the main buyers and sellers are, and what is happening within sub sectors as well as the sector as a whole.

 

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