January 11, 2016
The combination of the downward trend in global metal prices and the absence of indicators of a turnaround has some analysts anticipating a rise in asset sales by mining companies looking to adapt to the leaner market. As reported in the Financial Post, private equity firms may turn to acquiring those high-quality mining assets that are competitively priced. Michael Amm, partner and co-head of Torys’ Mining and Metals Practice, was sought by the Post for his comments. Below is an excerpt of the article.
That leaves private equity as an obvious buyer. There have been fewer private equity mining deals than investors expected over the past few years, though groups such as Waterton have done plenty of small-scale acquisitions. We may finally see more big transactions next year, especially with the Anglo assets going on the block.
“(Private equity) have only been dipping their toes (in mining) because they’re not used to resource-type exposure,” said Michael Amm, co-head of the mining group at Torys LLP. “We know they’re holding billions and billions of dollars. At some point, they will deploy it.”
To read the full article, click here.