Iron ore corporate activity 2019 Report

Insight 17 September 2019

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*Please note that this report only includes an Excel data file if this is indicated in "What's included" below

What’s inside this report?

A detailed overview of M&A activity in the iron ore sector in 2019.

Key facts and figures:

Iron ore M&A spend has risen by 287% this year
Total spend in 2018 was US$361 million. So far, US$1.4 billion has been spent in 2019
The most notable corporate transactions include:
- US$321 million sale of Atlas Iron to Hancock Prospecting
- Vale's US$550 million purchase of Ferrous Resources, which was finalised in August 2019

Why buy this report?

Get a complete view of the iron ore M&A landscape, including information about deals that have been announced but are not yet finalised, and deals that have been cancelled since 2012
Get breakdown of transaction spend by region: we cover Australia, Brazil, China, South Africa and Europe, amongst others
Get our forecasts for iron ore transaction activity in the coming years, and understand what’s changed in the market since the Vale tailings dam disaster earlier this year

You’ll also get access to our datasets, covering deal spend by region, mine status, buyer and seller.

Report summary

Investment spend in the iron ore sector has risen a massive 287% this year. A large number of these deals were first announced in 2018 but have been finalised in a strong 2019 market. No one could have foreseen the impact of Vale's dam failure on the iron or market which has resulted in higher prices and a revitalised interest in investment in the iron ore sector. So far in 2019, we have seen 12 deals complete with the activity including a change in ownership to several assets as well as a rise in equity interests in iron ore companies. While 2019 is expected to finish on a strong note, the number of corporate transaction in 2020 is expected to trend downward. We still think that investment in mines or projects with high grade product will remain attractive relative to low grade prospects but that the returns will need to be compelling.