<p>The metal space is expected to see a sizeable number of global merger and acquisition (M&A) scene deals in 2011 as well, according to a report by global consulting giant PricewaterhouseCoopers.<br /><br />As per the report, the total deal value in the metal sector rose to USD 27 billion in 2010 from USD 15.1 billion in the previous year.<br /><br />However, while the recovery looks large in year-on-year terms, it is modest compared to the highs of USD 86.4 billion and USD 144.7 billion reached in the M&A boom years of 2006 and 2007.<br /><br />What is more, there was no repeat of 2009's USD 1 billion contribution by Indian buyers to the total deal value -- instead, Indian purchases dwindled to just USD 93 million in 2010.<br /><br />In terms of volume, the number of cross-border deals in the metals space picked up to 188 in 2010 from 129 in the previous year. This translates into a growth of 46 per cent.<br />The largest deal completed in 2010 was Posco's USD 2.8 billion acquisition of a controlling stake in trading and resource company Daewoo International, followed by Vale-BRG Resources (USD 2.5 billion) and Sumitomo-Mineracao (USD 1.93 billion) deals.<br /><br />Some of the other major deals were Tangshan-Handan (USD 1.68 billion), Gerdau Steel-Gerdau Ameristeel (USD 1.6 billion) and JFE Steel Corporation of Japan's acquisition of a USD 1.02 billion minority stake in Indian steelmaker JSW Steel.<br /><br />Interestingly, the total value of the top five deals announced in 2010 or early 2011, which are anticipated to be completed during the year, has crossed USD 17 billion. This indicates a 60 per cent rise in size vis-a-vis the top five deals in 2010, which were worth USD 10.6 billion.<br /><br />The report said that pending deal flows indicate this upward trend in deal sizes will become even more evident in 2011.<br /><br />The upturn in deal activity was felt in all regions. The biggest year-on year increases came in the developed markets of North America and Western Europe.<br /><br />In the Asia-Pacific region, total deal value rose significantly in 2010, but the USD 11.5 billion total was a long way short of rivalling the USD 16.4 billion record high recorded in 2008.<br /><br />The rise was attributable to a revival in USD 1 billion-plus deals. None took place in 2009, whereas there were three such deals in 2010. However, the deal numbers actually fell by 10 per cent year-on-year.</p>
<p>The metal space is expected to see a sizeable number of global merger and acquisition (M&A) scene deals in 2011 as well, according to a report by global consulting giant PricewaterhouseCoopers.<br /><br />As per the report, the total deal value in the metal sector rose to USD 27 billion in 2010 from USD 15.1 billion in the previous year.<br /><br />However, while the recovery looks large in year-on-year terms, it is modest compared to the highs of USD 86.4 billion and USD 144.7 billion reached in the M&A boom years of 2006 and 2007.<br /><br />What is more, there was no repeat of 2009's USD 1 billion contribution by Indian buyers to the total deal value -- instead, Indian purchases dwindled to just USD 93 million in 2010.<br /><br />In terms of volume, the number of cross-border deals in the metals space picked up to 188 in 2010 from 129 in the previous year. This translates into a growth of 46 per cent.<br />The largest deal completed in 2010 was Posco's USD 2.8 billion acquisition of a controlling stake in trading and resource company Daewoo International, followed by Vale-BRG Resources (USD 2.5 billion) and Sumitomo-Mineracao (USD 1.93 billion) deals.<br /><br />Some of the other major deals were Tangshan-Handan (USD 1.68 billion), Gerdau Steel-Gerdau Ameristeel (USD 1.6 billion) and JFE Steel Corporation of Japan's acquisition of a USD 1.02 billion minority stake in Indian steelmaker JSW Steel.<br /><br />Interestingly, the total value of the top five deals announced in 2010 or early 2011, which are anticipated to be completed during the year, has crossed USD 17 billion. This indicates a 60 per cent rise in size vis-a-vis the top five deals in 2010, which were worth USD 10.6 billion.<br /><br />The report said that pending deal flows indicate this upward trend in deal sizes will become even more evident in 2011.<br /><br />The upturn in deal activity was felt in all regions. The biggest year-on year increases came in the developed markets of North America and Western Europe.<br /><br />In the Asia-Pacific region, total deal value rose significantly in 2010, but the USD 11.5 billion total was a long way short of rivalling the USD 16.4 billion record high recorded in 2008.<br /><br />The rise was attributable to a revival in USD 1 billion-plus deals. None took place in 2009, whereas there were three such deals in 2010. However, the deal numbers actually fell by 10 per cent year-on-year.</p>