Value of British Columbia's mining M&As rebounded after 2017’s decline
B.C.’s biggest mining mergers and acquisitions (M&As) in 2018 doubled in value to $9.5 billion compared with $4.6 billion in 2017, which was the second-lowest-valued year for M&As since 2013.
Despite the impressive growth in 2018, the annual value of B.C.’s mining M&As still has a long way to go to reach the 2015 high of $10.4 billion.
In recent years, the average mining M&A deal value has grown faster than the median value
A 272.9% increase since 2014 has driven the median M&A deal value to its highest level in six years. Over the past year, the median M&A deal value on BIV’s list of the biggest mining M&As grew 67.9% to $290 million in 2018 from $173 million in 2017. That gain more than wiped out the 27.9% decline experienced in the median value in 2016.
Deals are getting bigger.
In 2018, the largest deal was South32 Ltd.’s $2.1 billion acquisition of Arizona Mining Inc. That deal was more than three times the size of the largest 2014 deal at $621 million.
The value of each of the top four mining M&A deals in 2018 was higher than the top deal five years ago. The smallest deal value growth was even more impressive. It increased 15 times to $90 million in 2018 from $6 million in 2014.