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PwC Report: Metals M&A Activity Sluggish

Tuesday, October 29, 2019
Uncertainties surrounding ongoing trade negotiations, retaliatory rounds of tariffs, and the health of the global economy have seemingly continued to hinder deal activity in the metals sector, according to a Q3 2019 mergers and acquisitions analysis for the metals sector, published by PricewaterhouseCoopers. Highlighted in the report:

• In Q3 2019, the total deal value declined by 46 percent to $3.2 billion versus Q2 2019. For year-to-date (YTD) 2019, the deal value also declined by 48 percent to $25.6 billion versus YTD 2018.
• Deal volume for Q3 2019 declined by 9 percent to 147 deals compared to Q2 2019. Deal volume for YTD 2019 also declined by 15 percent to 446 deals compared to YTD 2018.
• The average deal size for Q3 2019 declined significantly by 45 percent to $40.8 million versus Q2 2019. The average deal size also declined by 40 percent to $109.9 million for YTD 2019 versus YTD 2018.

Despite accounting for the highest YTD deal volume amongst metal subsectors, the steel industry faced continued challenges in Q3 2019, with more likely ahead in coming quarters, according to the report. Of note, the global automotive industry has seen a softening in demand and concerns over a looming recession remain.


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