Forging ahead quarterly metals Mergers & Acquisitions update

 

May 2009

 

Forging ahead

 

First-quarter 2009 metals industry mergers and acquisitions analysis

 

The weight of the auto industry continues to have an adverse effect on the metals sector.

 

While overall deal activity was low during first quarter 2009, nearly all of the deals made in the metals sector came from strategic investors, similar to years past. Strategic investors accounted for 98 percent ($11.8 billion) of announced deal value during first quarter 2009, while the remaining two percent came from financial investors. This is consistent with deals seen by investor groups over the past two years, when strategic investors accounted for 93 percent of announced deal value in 2007 and 77 percent in 2008.

 

This quarter's special report focuses on the auto industry's impact on each of the individual subsectors. The impact is unique, because companies that are major direct or indirect suppliers to certain troubled automobile manufacturers find their market positions fundamentally changed.