MergerMarket: North America Natural Resources Trendspotter: M&A Picks Up Buoyed by Record-Breaking Mining Deal Activity
This article was originally published on MergerMarket.
A&M Managing Director, Jay Moody, was featured in the MergerMarket article “North America Natural Resources Trendspotter: M&A Picks Up Buoyed by Record-Breaking Mining Deal Activity." M&A activity has picked up since hitting its lowest deal value since 2Q22, boosted by record-high deal-making in the mining sector and the oil and gas industry. With the mining sector accounting for 35.5% of total M&A deal value in 1H23, it continues to gain momentum as companies and countries compete to secure materials and minerals for transitioning energy sources and to minimize dependence on China.
Experiencing a resurgence from pandemic lows, the oil and gas industry reached its highest deal value in 15 quarters during 2Q23.
"[Since 1Q23], we've seen more add-on transactions rather than large platform deals... mostly driven by portfolio companies that are looking to continue to grow in the face of economic conditions that may get more challenging in the future."
That said, clean-energy-related assets continue to attract the most attention, noted Moody.
"A lot of the investment appetite right now is on sustainable and new emerging technologies," he said. "We are seeing a lot of interest in battery storage and the ecosystem around batteries that will need to be improved from EV charging stations to how you're going to recycle batteries when they come due."
