Energy deals: mining M&As on the rise

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GlobalData’s deals index shows a rise in mining M&As, while power and oil and gas deals remained low during the pandemic. 

Deals analysis from GlobalData shows that mergers and acquisitions (M&As) in mining rose significantly during the Covid-19 pandemic and now sit above pre-pandemic levels.

According to GlobalData’s deals tracker, M&A deals worth $8.86bn were announced globally in Q2 2020 in the mining and metals industry. The value of M&As announced in Q3 was $7.21bn, in Q4 it was $18.94bn and in Q1 2020 it was $10.76bn.

The growth in mining M&As is in line with the overall positive performance of the mining sector since the start of the pandemic, which also saw a growth in mining jobs and stock prices driven by high demand for commodities and a rise in commodity prices.

Other energy sectors didn’t fare as well, with M&As in the power sector now at pre-pandemic levels following a drop between March and November 2020, and a spike in Q1 2021.

In oil and gas, M&As are still sitting significantly below pre-pandemic levels. Oil and gas is still lagging behind in Covid-19 recovery compared to the other energy sectors, which is also evident in the slow recovery of oil and gas jobs and stock prices.