1. LINE

      Text:AAAPrint
      Economy

      M&A activity in resources sector losing momentum(2)

      1
      2015-04-07 08:38China Daily Editor: Wang Fan

      Wang Kunxiao, president of Yantai Jereh Oilfield Services Group Co Ltd, a private oil company based in East China's Shandong province, said low crude prices have had a negative impact overall on the petroleum production chain, but emphasized that more foreign acquisition opportunities have surfaced as a result.

      Wang said Yantai Jereh is currently researching potential oil and gas asset targets in countries including Iraq, Russia and Venezuela.

      Companies dig for value in mining deals

      With economic growth slowing and commodity prices sinking, Chinese resources companies are becoming more selective in outbound mergers and acquisitions, one expert said.

      "If you think commodity prices will go up in the long term, this is the time to buy," said Jeremy South, a specialist in mining M&A at Deloitte Touche Tohmatsu Ltd.

      During the past 18 months, falling commodity prices have pushed many small companies into "survival mode", according to a Deloitte report called Tracking the Trends 2015.

      In 2007, global mining deals reached $103 billion, but in 2013 the figure was only $12 billion. In the first half of 2014, 117 transactions in the mining sector were announced, with the total value rising 56 percent year-on-year to $13.2 billion, Deloitte said.

      "As the situation of junior companies becomes more dire, they may be forced to sell at any price at some point," it said. Given these conditions, Chinese companies will be more selective in the outbound M&A market, said South.

      According to the report, Chinese investment has long fueled the resources sector, but it appears to be waning. "The failure of roughly 80 percent of China's overseas mining deals has seen the country pull back on resource investments in countries throughout Africa, South America and the Middle East," said the report.

      "In the future, Chinese buyers will only be interested in assets that China needs like copper and gold," said South. And unlike the many small deals of the past, Chinese companies will focus on big-ticket transactions, he said.

      In April 2014, a Chinese consortium purchased a Peruvian copper mine from Glencore Xstrata for $5.85 billion. Globally, there are many sectors in the mining industry that have potential, including copper, zinc, lead, gold and coking coal, according to South.

      Related news

      MorePhoto

      Most popular in 24h

      MoreTop news

      MoreVideo

      News
      Politics
      Business
      Society
      Culture
      Military
      Sci-tech
      Entertainment
      Sports
      Odd
      Features
      Biz
      Economy
      Travel
      Travel News
      Travel Types
      Events
      Food
      Hotel
      Bar & Club
      Architecture
      Gallery
      Photo
      CNS Photo
      Video
      Video
      Learning Chinese
      Learn About China
      Social Chinese
      Business Chinese
      Buzz Words
      Bilingual
      Resources
      ECNS Wire
      Special Coverage
      Infographics
      Voices
      LINE
      Back to top Links | About Us | Jobs | Contact Us | Privacy Policy
      Copyright ©1999-2018 Chinanews.com. All rights reserved.
      Reproduction in whole or in part without permission is prohibited.
      主站蜘蛛池模板: av无码免费一区二区三区| 国产成人免费视频| 免费播放春色aⅴ视频| 亚洲第一区二区快射影院| 国产情侣激情在线视频免费看| 中文字幕亚洲第一在线| 亚洲视频免费在线看| 亚洲精品在线不卡| 99视频全部免费精品全部四虎| 亚洲欧洲精品在线| 青春禁区视频在线观看直播免费 | 国产一精品一av一免费爽爽 | 亚洲精品天天影视综合网| 久久免费精彩视频| 亚洲最大黄色网站| 成人免费a级毛片无码网站入口 | 国产免费区在线观看十分钟| 一本久久a久久精品亚洲| 无码av免费一区二区三区试看| 亚洲专区先锋影音| 久久久www成人免费毛片| 激情婷婷成人亚洲综合| 亚洲男人av香蕉爽爽爽爽| 国产无遮挡裸体免费视频在线观看 | 大片免费观看92在线视频线视频| 国产成人高清亚洲| 亚洲免费观看视频| 亚洲五月综合网色九月色| 国产免费午夜a无码v视频| 国产免费MV大全视频网站| 日木av无码专区亚洲av毛片| 免费无码又爽又高潮视频| 九九久久精品国产免费看小说| 亚洲国产精品不卡在线电影| 无码免费午夜福利片在线| 黄色免费在线网址| 亚洲精品91在线| 亚洲精品无码专区2| 8888四色奇米在线观看免费看| 国产精品亚洲AV三区| 久久精品国产亚洲AV麻豆~|