Canadian Mining Journal

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Rough and tumble M&A: Watch for more hostile bids, distressed M&A this year

The days of mining companies being offered fat premiums by potential buyers are but a distant dream to shareholders.


The days of mining companies being offered fat premiums by potential buyers are but a distant dream to shareholders.

While modest premiums are still attainable, this year miners may be more likely to see hostile or compelled bids that limit those premiums.

Already, the mining sector has seen three hostile takeover bids in 2014: Goldcorp’s (TSX: G; NYSE: GG) bid for Osisko Mining (TSX: OSK), Hudbay Minerals’ (TSX: HBM; NYSE: HBM) bid for Augusta Resource (TSX: AZC; NYSE-MKT: AZC), and Waterton Global Resource Management’s bid for Chaparral Gold (TSX: CHL).

John Gravelle, PwC’s global mining leader, says we may well see more hostile bids as the year progresses, driven by ultra-low valuations.

Continue reading this story at MiningMarkets.ca.


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