EY: Capital Squeeze on Mining will Pressure Deals in 2016, Could Drive Mergers, Joint Ventures

JOHANNESBURG--February 12, 2015--Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--The mining and metals markets is under pressure from sluggish demand and the concomitant squeeze on production efficiency and capital investment. This will shape merger and acquisition deals in 2016. In this environment of volatility, divestment in projects is expected to increase as the timing of a recovery remains uncertain. Within this article: Cites reports from Ernest & Young (EY) and KPMG.