Our “Mining Quarterly Deal Analysis - Q4 2012: M&A and Investment Trends” report is areliable source of essential data and analysis of mergers and acquisitions (M&As) and financing in the mining industry. The report provides detailed information on M&As, equity/debt offerings, private equity (PE), venture financing and partnership transactions registered in the mining industry in Q4 2012. The report offers detailed comparative data on the number of deals and deal values in the last five quarters segregated into deal types, segments, and geographies. Besides, the report furnishes information on the top PE, venture capital (VC), and advisory firms in the mining industry. GlobalData derived the data presented in this report from proprietary in-house Mining eTrack deals database, and through primary and secondary research.
M&A Activity Decreased In The Mining Market In Q4 2012
M&As, which include change in ownership and control of companies (We do not consider this value as a new investment in the market), in the mining industry recorded a marginal decrease in Q4 2012. The number of merger and acquisition (M&A) deals in the mining industry registered a decrease of 1% in Q4 2012 with 136 deals, as compared to 138 deals in Q3 2012. The deal value also decreased from $11.3 billion in Q3 2012 to $10.7 billion in Q4 2012, indicating a decrease of 5%. M&As in the North American mining market registered a decrease in the number of deals and a substantial increase in deal value from 134 deals worth $357m in Q3 2012, to 131 deals worth $1.7 billion in Q4 2012. Asia-Pacific reported a decrease in deal activity from 45 deals worth $3.6 billion in Q3 2012 to 43 deals worth $3.2 billion in Q4 2012. Europe, Middle East and Africa, South and Central America registered an increase in deal activity with 44 deals worth $5.7 billion in Q4 2012, as compared to 41 deals worth $5 billion in Q3 2012. Of the 136 deals, 73 deals were recorded in the gold mining market, indicating 50% of the total deals, followed by 39 deals in the copper mining market, constituting 28% of the total deals.
New Investments Increased Mining Industry In Q4 2012
New investments in mining companies, including financing through equity offerings, debt offerings, private equity and venture financing, registered an increase of 19% in number of deals from in 685 Q3 2012 to 812 in Q4 2012 and a substantial decrease of 27% in deal value with $23.5 billion in Q4 2012, as compared to $32.1 billion in Q3 2012. The majority of investments came from the debt market with $16.3 billion in Q4 2012, which accounted for 69% of new investments in the mining industry. Global debt offerings, including public and private debt placements, registered a 13% decrease in the number of debt offering deals and a 40% decrease in deal value with 56 deals worth $16.3 billion in Q4 2012, as compared to 64 deals worth $27.2 billion in Q3 2012. North American had a majority share of debt offerings by region constituting 59% of the total deals in Q4 2012, followed by Asia-Pacific with 23% and Europe with 16%. Global equity offerings, including initial public offerings (IPOs), secondary offerings, and private investment in public equities (PIPEs), registered an increase of 22% in the number of equity offering deals and 46% in deal value with 756 deals worth $7.1 billion in Q4 2012, as compared to 621 deals worth $4.9 billion in Q3 2012. North American had a majority share of equity offering deals constituting 65% of the total deals in Q4 2012, followed by Asia-Pacific with 29% and Europe with 6%.
Asset Transactions Increased In The Mining Industry In Q4 2012
Asset acquisition in the mining industry registered an increase of 7% in the number of deals and a marginal decrease of 2% in deal value with 261 deals worth $2.4 billion in Q4 2012, as compared to 243 deals worth $2.5 billion in Q3 2012. Some of the high-value asset acquisitions in Q4 2012 were Orion, Venus, Los Jarros projects and Ocampo mine in Mexico, and Ekati Diamond mine. North America topped the number of asset acquisitions by asset location, accounting for 70% of the total assets sold in Q4 2012, followed by Asia-Pacific with 19% and South and Central America with 8%. Orion, Venus, Los Jarros projects and Ocampo mine in Mexico, Ekati diamond mine in Canada and Ram River and Scurry Ram coal properties in Canada were some of North American assets acquired in Q4 2012. North America registered a decrease in the number of deals and a substantial increase in deal value from 134 deals worth $357m in Q3 2012, to 131 deals worth $1.7 billion in Q4 2012. Asia-Pacific also reported an increase in the number of deals and a decrease in deal value with 62 deals worth $470.4m in Q4 2012, as compared to 53 deals worth $1.1 billion in Q3 2012. Europe, South and Central America and Middle East and Africa recorded 68 deals worth $257m. Gold mines topped the asset purchase activity with 183 deals worth $1.3 billion in Q4 2012, constituting 70% of the total deals.
Capital Raising Through Debt Offerings Decreased In Q4 2012
The raising of capital, through debt offerings, registered a 13% decrease in the number of deals and a 40% decrease in deal value with 56 deals worth $16.3 billion in Q4 2012, as compared to 64 deals worth $27.2 billion in Q3 2012. The substantial decrease in the deal value was due to greater number of more than $1 billion value deals in Q3 2012. Xstrata’s placement of 2.45% notes due 2017 for $1.8 billion, 1.8% notes due 2015 for $1.3 billion and 4% notes due 2022 for $1 billion, Rio Tinto’s offering of notes for $1.6 billion, and Southern Copper’s offering of 5.25% notes due 2042 for $1.2 billion were some of the high value deals registered in Q4 2012.
Public offerings in the debt market registered a decrease in the number of deals and a substantial decrease in deal value with 19 deals worth $8 billion in Q4 2012, as compared to 32 deals worth $21.2 billion in Q3 2012. Private placements registered an increase in the number of deals and deal value with 37 deals worth $8.3 billion in Q4 2012, as compared to 32 deals worth $6 billion in Q3 2012.
Deals Increased In North America And Asia-Pacific In Q4 2012
North America registered an increase in the number of deals and a marginal increase in deal value with 706 deals worth $12.8 billion in Q4 2012 as compared to 594 deals worth $12.6 billion in Q3 2012, indicating an increase of 19% in the number of deals and 1% in deal value. The raising of capital, through equity and debt offerings in the North American mining market registered an increase in the number of deals and deal value with 517 deals worth $9.4 billion in Q4 2012, as compared to 383 deals worth $8.3 billion in Q3 2012. Asia-Pacific registered a decrease in deal activity with 369 deals worth $9 billion in Q4 2012 as compared to 380 deals worth $14.7 billion in Q3 2012, indicating a decrease of 3% in the number of deals and 38% in deal value. Asset purchases in Asia-Pacific recorded an increase in the number of deals and a decrease in deal value with 62 deals worth $470.4m in Q4 2012, as compared to 53 deals worth $1.1 billion in Q3 2012.