Torys mining co-heads weighs on mining M&A in the past year

Torys’ Mining and Metals co-heads Michael Amm and Michael Pickersgill spoke to CIM Magazine about how 2019’s M&A deal activity did not live up to the hype of previous years.

In the article, which discusses the M&A trends in the sector, Amm says the type of M&A seen was “cautious and conservative”. In the first nine of months 2019, M&A transaction activity by value was down 40% from the same period in 2018.

“The type of M&A [we’ve seen] is cautious and conservative for the most part, not huge premiums, a lot of stock deals and a lot of thought and recognition of what shareholders said in the last cycle,” he said.

“A lot of the acquirers had paid too much and had been too aggressive, there were high-debt write-offs and a lack of profitability.”.

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