China, which dominated the world's mining and metal transaction sectors in 2009, will shift its merger and acquisition (M&A) activity into domestic consolidation, with deals reaching an unprecedented level in 2011, according to a report from Ernst & Young released on Tuesday.
"Government-led domestic consolidation in the coal and steel sectors drove the value of domestic deals up 89 percent to $8 billion in 2010," said Raymond Ng, Ernst & Young's China Energy leader.
"Given China's newly announced 12th Five-Year Plan (2011-2015), we predict domestic M&A in 2011 in these sectors will materialize at an even faster pace," he said.
The government's intention to build multi-sector mining companies is likely to see the emergence over the next few years of a Chinese mining conglomerate with a global impact unrivalled by any other sector in State-owned enterprise, according to the report.
"Government-led domestic consolidation in the coal and steel sectors drove the value of domestic deals up 89 percent to $8 billion in 2010," said Raymond Ng, Ernst & Young's China Energy leader.
"Given China's newly announced 12th Five-Year Plan (2011-2015), we predict domestic M&A in 2011 in these sectors will materialize at an even faster pace," he said.
The government's intention to build multi-sector mining companies is likely to see the emergence over the next few years of a Chinese mining conglomerate with a global impact unrivalled by any other sector in State-owned enterprise, according to the report.
