Acquisition in the mining sector of Austrailia

Acquisition in the mining sector of Austrailia Essay example
Masters
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Finance & Accounting
Pages 9 (2259 words)
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This reports aims to view and analyze growing mergers and acquisition deals from world. In the year 2011, the mining and metal sectors have successfully emerged as strong sector with growth trend after riding the high global economic uncertainty…

Introduction

To strengthen their financial position dominant players of this industry across world, and especially in Australia turned to mergers and acquisitions. Year 2011 witnessed global mergers and acquisition of $.162, 439 million with 43percent higher than previous year in terms of value (e Ernst & Young, 2012). In Australia alone, total value of M&A deals in mining and metal sectors in year 2011 was $.38, 594 million as compared to $.23, 469 million in the year 2010. Mergers and acquisitions in mining and metal sectors of Australia also witnessed large inbound and outbound deals. This report sheds lights on the aim and objective of these deals based on two case studies from Australian mining sector. Case studies used for the purpose are: Atlas Iron acquiring Giralia resources ($.805 million) and BHP Billiton acquiring HWE mining ($.732 million). Both deals been successfully completed in year 2011with both parties of two deals belonging to same continent. The two case studies witnessed overall aim of acquisitions by two firms to enhance their resource base, increased synergy in their operations and undertake low risk transactions. The capital agenda guiding these transactions was to preserve, optimize, raise and invest capital (e Ernst & Young, 2012). Atlas Iron acquiring Giralia resources was mainly driven by motif to increase it resource base ...
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