Dear Miners, Beware of M&A - Sincerely, KPGM 

It has been quite a year so far for the mining sector, and with companies better positioned to acquire bargains, KPMG warns it may not be such a good idea. A recent industry-wide study conducted by KPMG found that 2/3 of North American M&A deals have failed to deliver value to the acquirer and in 29% of cases, actually reduced value. “The survey found that people had not done appropriate due diligence and planning and more importantly, there wasn’t really a merger integration plan to effectively realize the synergies,” said Lee Hodgkinson, a partner for the firm. Looking at the mining sector as a whole, he noted that he would suggest companies hold their course. “People are being brave again now, the stocks have come up a lot but they’re still not at the levels where they were so we’re not all the way back, by any means.”  (show less)

It has been quite a year so far for the mining sector, and with companies better positioned to acquire bargains, KPMG warns it may not be such a good idea. A recent industry-wide study conducted by KPMG found that 2/3 of North American M&A deals have failed to deliver value to the acquirer and in 29% of cases, actually reduced value. “The survey found that people had not done appropriate due diligence and planning and more importantly, there wasn’t really a ... (read more)

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