The value and number of transactions in the mining and metals industries are expected to soar due to global competition to secure raw materials, said in an analysis prepared by Mike Elliott of Ernst & Young. The number of transactions in the first half of 2010 is 20% (544) over the same period the previous year, while the value of transactions is 46% greater (40.6 billion dollars). “The activity of transactions has increased at the end of 2009 and continues gaining momentum,” added Elliott. In his analysis is that “expectations are diversified global investment in mining to show desire for new acquisitions. In this connection, we will probably witness a significant association of North American market, which in the first half of 2010, dominated in large deals and this will continue over the next 6-12 months”. While Australia was a leading investment destination in 2009, Canada leads the first half of this year, Latin America also demonstrate the growth of sensitive activities. Security of resources continues to be a driving force for growth of transactions in the production of metals. Other factors that contribute to the process are improved cash flow and availability of capital for transactions. As for raising funds for financing preferred shares remain a source of capital in the sector, says the analysis of Ernst & Young. Until last year, primarily large enterprises in the mining industry have taken their capital increase, this year, medium-sized companies are more active in raising funds from the market.
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