Will depressed commodity and equity prices spark a surge in merger & acquisition (M&A) activity

Brendon Lau

Vantage Point Partners

Will depressed commodity and equity prices spark a surge in merger & acquisition (M&A) activity? The jury's still out but Halliburton's $US35 billion bid for Baker Hughes has fuelled optimism in the yes camp. The deal is significant because other mega deals have yet to materialize with Rio Tinto (RIO) spurning Glencore's amorous advances and the mixed market feeling towards BHP's NewCo spin-off (together with the lack of suitors for its Nickel West asset). Halliburton's audacious bid could trigger others to follow given that the spirit for deals is strong while the flesh is weak. Meaning miners want to do deals but lack the courage. Grant Thornton's recent survey points to a potential doubling in M&A deals in 2015 with a third of senior executives at major mining houses saying their company is likely to make an acquisition while 27% saying their company would either sell part of all of their assets. Embattled mining investors who have suffered a 15% underperformance to the broader market this calendar year would welcome any drop of good news. (VIEW LINK)


Brendon Lau
Associate Director - Investor Relations
Vantage Point Partners

I am with Australia's leading small caps investor relations and media relations firm, Media & Capital Partners. I worked as a small caps analyst and journalist prior to MC Partners. Views are my own and should not be regarded as advice or...

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