Insight
Global coal M&A activity: Australia drives rebound
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
Global coal M&A spend (ex. China and India) rebounded strongly in H1 2017, but the number of deals continued to fall. While we do not presently report on China specific transactions, the potential mega merger between Shenhua and China Goudian to create a coal-power titan would dwarf coal transactions worldwide. Early signs of competition and price escalation for prized assets re-emerged following Yancoal and Glencore's short bidding duel for Rio Tinto's Coal & Allied operations.
Table of contents
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Executive summary
- 2017 M&A activity rebounds surpassing global spend in 2016, but focus remains on buyers
- Spot prices surge above deal implied prices
- Narrowing premiums in Australia, higher premiums in Indonesia
- Operating asset purchases preferred ahead of project acquisition or development
Tables and charts
This report includes the following images and tables:
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Acquisition spend by regionNumber of deals by regionDeal-implied long-term benchmark thermal coal prices v Newcastle (6,000 nar) export thermal coal spot price
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Deal-implied long-term benchmark metallurgical coal prices v Queensland HCC coal spot priceAverage premiums/discounts paid by region compared with GEM valuationAcquisition spend by statusNumber of deals by status
What's included
This report contains:
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