Mining challenges raise likelihood of mergers and acquisitions
A range of factors will feed into pressure for restructuring in 2024, analysts predict
21 January 2024 - 07:37
Increased merger & acquisition activity is likely in the mining sector this year due to soft commodity prices, logistics bottlenecks and lower market capitalisation, analysts say.
Louis Kruger, who leads Africa energy, resources & industrials at Deloitte, said margins had shrunk for some commodities and balance sheets could be under pressure, which could lead to restructuring and the sale of assets. Lower market capitalisation of some companies could facilitate takeovers...
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