Gold-Related M&A Activity Declined by 52% in First Half 2020

SEATTLE (Scrap Monster): The UK-headquartered data analytics and consulting company GlobalData plc., in its latest report covering the initial six-month period of the current year, states that global mining deal value recorded notable decline during the period, mainly hit by Covid-19 impacts.

According to them, the mergers and acquisition (M&A) deals involving gold recorded a decline by 51.6% during January to June this year. Out of the top ten asset transaction deals worldwide, seven involved gold. The $3.79 billion acquisition of Detour Gold by Kirkland Lake Gold emerged as the biggest completed deal, noted Vinneth Bajaj, senior mining analyst at GlobalData.

Meantime, the total number of M&A deals increased significantly from 1,811 in the initial half of 2019 to 2,271 in H1 this year. Five countries- Canada, the U.S., Australia, China and India accounted for nearly 87% of the total deal volume, with Canada topping the list with 32% share. Also, the volume of completed M&A deals too surged higher by 28.4% over the previous year.

The global mining deal value registered drastic year-on-year decline by almost $18 million to total $46.6 billion in the first half of 2020.

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