Global and Italian M&A Insights: Metal & Mining

Page 1

Global and Italian M&A trends in Metal & Mining FY2020

February 2021


M&A Trends Metals & Mining Q1’18 – Q4’20 - Global Despite the global pandemic the number of transactions increased in 2020 compared to 2019 with the most active subsector being gold ore. The total deal value in FY20 remained stable compared to last year with significant impact from megadeals • Barrick Gold Corp of Canada merged with Randgold Resources Ltd • Newmont Mining Corp. acquisition of Goldcorp Inc. for US$10 bn

• JV by Nippon Steel & Sumitomo Metal Corp and ArcelorMittal India Pvt Ltd, acquisition of Essar Steel India for US$6.8bn • Tata Steel Ltd acquisition of Bushan Steel for US$5.2bn

• CRED Holding Co Ltd acquisition of Liaoning Zhongwang Group Co Ltd, a Liaoyang-based producer of primary aluminum for US$ 6.6bn

700

35.000

600

30.000

500

25.000

400

20.000

300

15.000

200

10.000

100

5.000

-

Q1'18

Q2'18

Q3'18

Q4'18

Q1'19

Q2'19

Q3'19

Q4'19

Q1'20

Q2'20

Q3'20

Q4'20

Deal Value (US$m)

Deal Volume

Metals & Mining

0

Deal Volume

FY19

FY20

Delta FY20 vs FY19

Aluminum

114

106

(7.0%)

Copper Ore

114

152

33.3%

Gold Ore

531

768

44.6%

Steel

189

199

5.3%

Mining

218

205

(6.0%)

Other Metals

501

478

(4.6%)

Other

139

147

5.8%

Total Deal Volume

1,806

2,055

13.8%

Deal Value ($M)

FY19

FY20

Delta FY20 vs FY19

Aluminum

6,346

2,609

(58.9%)

Copper Ore

6,504

6,858

5.4%

Gold Ore

24,382

19,682

(19.3%)

Steel

11,026

9,775

(11.3%)

Mining

2,139

5,213

143.7%

Other Metals

10,644

9,006

(15.4%)

Aluminum

Copper Ore

Gold Ore

Other

3,736

9,585

156.6%

Steel

Mining

Other Metals

Total Deal Value

68,403

67,158

(1.8%)

Other

Total Deal Value

Total Deal Value excl. Megadeals

Source: Refinitiv and PwC Analyses, based on closed and pending deals, allocated to quarters based on the announcement date. Deal value available for c. 30% of deals at the Global level and c. 25% at the Italian Level


M&A Trends Metals & Mining Q1’18 – Q4’20 by region All regions showed similar M&A trend in terms of volumes and values, with a decrease in Q1’20 due to COVID-19 crisis, followed by a rebound in Q3/Q4’20, with Americas mostly affected in value (-48%)

16.000

600

30.000

350

14.000

500

25.000

300

12.000

400

20.000

250

10.000

300

15.000

200

8.000

200

10.000

150

6.000

100

5.000

100

4.000

50

2.000

0

0

120

20.000

100

15.000 10.000 5.000 0

80 60 40 20 0

16.000 14.000 12.000 10.000 8.000 6.000 4.000 2.000

Deal Value ($m)

25.000

Deal Value ($m)

Deal Volume

200 180 160 140 120 100 80 60 40 20 0

0

EMEA & Italy

Asia Pacific

Deal Volume

0

Deal Volume

400

Deal Value ($m)

35.000

700

Deal Volume

Americas

Deal Value ($m)

Global

Deal Volume

FY19

FY20

Delta FY20 - FY19

EMEA

337

322

(4.5%)

Of Which Italy

11

20

81.8%

Americas

824

1114

35.2%

Asia Pacific

645

619

(4.0%)

Global

1,806

2,055

13.8%

Deal Value ($m)

FY19

FY20

Delta FY20 - FY19

EMEA

7,200

13,533

88.0%

Of Which Italy

321

158

(50.8%)

Americas

31,027

16,201

(47.8%)

Asia Pacific

30,176

37,423

24.0%

Global

68,403

67,158

(1.8%)

0 Italy

Source: Refinitiv and PwC Analyses, based on closed and pending deals, allocated to quarters based on the announcement date. Deal value available for c. 30% of deals at the Global level and c. 25% at the Italian Level

EMEA excl. Italy


Corporate vs PE deal volumes and values Q1’18-Q4’20 - Global Corporate buyers deals activity remained high for all FY20 with a weight varying from 92% to 95% of total transactions. Cross Border transactions increased in terms of volumes (on avg. 56.1% in FY20 vs 51.6% in FY19) Corporate vs Private Equity - deal volumes and values Q2'18

Q3'18

Q4'18

Q1'19

Q2'19

Q3'19

Q4'19

Q1'20

Q2'20

Q3'20

Q4'20

FY18

FY19

FY20

Total Deal Volume

508

447

436

440

384

495

459

468

435

511

590

519

1,831

1,806

2,055

Corporate

91%

92%

92%

94%

92%

92%

93%

92%

94%

94%

95%

92%

92%

92%

94%

PE

9%

8%

8%

6%

8%

8%

7%

8%

6%

6%

5%

8%

8%

8%

6%

Total Deal Value ($m)

31,368

16,666

31,008

23,827

22,816

13,563

8,872

23,153

17,541

13,637

13,585

22,396

102,869

68,403

67,158

Corporate

83%

95%

78%

94%

96%

86%

84%

97%

97%

80%

98%

92%

86%

93%

92%

PE

17%

5%

22%

6%

4%

14%

16%

3%

3%

20%

2%

8%

14%

7%

8%

700

35000

600

30000

500

25000 Deal Value ($m)

Deal Volume

Q1'18

400 300

20000 15000

200

10000

100

5000

0

Q1'18

Q2'18

Q3'18

Q4'18

Q1'19

Q2'19

Q3'19

Q4'19

Q1'20

Q2'20

Q3'20

Q4'20

Source: Refinitiv and PwC Analyses, based on closed and pending deals, allocated to quarters based on the announcement date. Deal value available for c. 30% of deals at the Global level and c. 25% at the Italian Level

0

Q1'18

Q2'18

Q3'18

Q4'18

Q1'19

Q2'19

Q3'19

Q4'19

Q1'20

Q2'20

Q3'20

Q4'20


M&A Trends Metals & Mining Q1’18 – Q4’20 - Italy Despite the global pandemic the number of transactions in 2020 has nearly doubled the number of to 2019 with the most active subsector being Steel • Liberty House Ltd acquisition of ArcelorMittal Piombino SpA for US$0.8bn • Timken Europe BV acquisition of Rollon SpA for US$0.5bn

• Tupy SA of Brazil acquisition of automotive components business of Teksid SpA for US$0.2bn

Metals & Mining 8

900

7

800 700

6

Deal Volume

500 4 400 3

Deal Value (US$m)

600

5

300

2

200

1

100

-

0

Q1'18

Aluminum

Q2'18

Q3'18

Copper Ore

Q4'18

Q1'19

Gold Ore

Q2'19

Steel

Q3'19

Mining

Q4'19

Q1'20

Other Metals

Q2'20

Q3'20

Other

Source: Refinitiv and PwC Analyses, based on closed and pending deals, allocated to quarters based on the announcement date. Deal value available for c. 30% of deals at the Global level and c. 25% at the Italian Level

Q4'20

Total Deal Value

Deal Value

FY19

FY20

Delta FY20 vs FY19

Aluminum

3

2

(33.3%)

Copper Ore

0

0

N/A

Gold Ore

0

0

N/A

Steel

7

10

42.9%

Mining

0

2

N/A

Other Metals

0

3

N/A

Other

1

3

200.0%

Total Deal Volume

11

20

81.8%

Deal Value

FY19

FY20

Delta FY20 vs FY19

Aluminum

44

17

(61.5%)

Copper Ore

-

-

N/A

Gold Ore

-

-

N/A

Steel

278

4

(98.7%)

Mining

-

127

N/A

Other Metals

-

11

N/A

Other

-

-

N/A

Total Deal Value

321

158

(50.8%)


Metals & Mining Macro Trends and Outlook Along with decennial trends such as Urbanization and Motorization, some significant emerging trends related to sustainability and innovation are going to be accelerated as a result of COVID-19’s effects

Sustainability

Industry 4.0

Geographical Aspect

Vertical Integration

Price Development

Players, across the European mining and metals industry, are increasingly looking at reducing their carbon footprints as shown by the ongoing developments of new lithium extraction techniques in Western Europe and in the growing use of renewables in steel production in the EU. The steel sector, in particular, aims to reshape Carbon emission through ambitious projects such as Carbon Capture and Storage, Hydrogen or Biomass as a reducing agent, and usage of electric arc furnaces instead of blast furnaces.

As a result of Indutry 4.0 development, new industries and services such as smart cars, smart energy, and smart buildings will all gain ground, bringing profound changes in the steel industry by both direct and indirect means: an indirect impact on steel demand through steel-consuming industries and a direct impact on the steelmaking process.

China will remain the driving force behind global steel production: the country accounted for 53.7% of global steel production in 2020, and this share is forecast to remain largely intact until 2029.

Metal producers will also look into vertical integration despite the potential economic and political impact of the pandemic on the mining sector, derived by the rise in international and local political risks and the likelihood of protectionist trade and fiscal policies including heightened risk of greater royalty and tax policies - as well as the incidences of social unrest, leading to potential mine disruptions.

In 2021, a moderate growth in gold and iron ore prices is expected by most analysts as the recovery in global growth should support industrial metal prices in general.


Main M&A Operations in Italy (1/4) (2019- 22 Feb. 2021)

M&A deals in the iron and steel & other metals production, metal ore or non-metallic ores or other mining activities or mining #

Date

Target

1

Jan 21

Bidue Srl

2

Dec 20

Alunext S.r.l. (51% Stake)

3

Dec 20

Aussafer Due Srl

4

Dec 20

5

Jan 21

6

DuferdofinNov 20 Nucor Srl (50% Stake)

7

Nov 20

GKN Wheels Ltd

8

Jul 20

Profiltubi SpA

Target Geo

Target sector

Bidder

Other metal products - welded Eusider S.p.A. pipes and tubes Industrial equipment and Streparava S.p.A. machinery, other metal products Precision laser cutting, sheet metal processing, 21 Invest S.p.A. and metal fabrication services

Bidder Geo

Bidder sector Iron and steel production Automotive components

Venture Capital/ Private Equity

ILVA S.p.A (50% Stake)

Iron and steel production

Invitalia SpA

Principal finance, Other services

Industrie De Nora S.p.A. (33% Stake)

Inorganic chemicals

Snam SpA

Utilities (other)

China, UK, Italy, USA

Importers and Duferco wholesalers, Iron Participations and steel Holdings SA production Automotive components, AURELIUS Equity Industrial Opportunities SE & equipment and Co. KGaA machinery Iron and steel production

AUCTUS Capital Partners AG

Description • Eusider Spa has acquired Bidue Srl, an Italy-based producer of welded pipes and tubes, from Borghi family.

• Streparava acquired a 51% stake in Alunext S.r.l., a Italy-based foundry BU of Costamp Group SPA (CG).

• 21 Invest S.p.A. acquired a majority stake in Aussafer Due Srl, the Italy-based company specializing in high technology metal work. • Invitalia acquired 50% stake in ILVA S.p.A. for a consideration of EUR 400m, through a capital increase transaction. • The implied equity value of the transaction will be EUR 800m. A second capital increase is scheduled for May 2022, which will be subscribed up to EUR 680m by Invitalia and up to EUR 70m by Arcelor Mittal. Upon completion of the second capital increase, Invitalia will be the majority shareholder with 60% stake and Arcelor Mittal with 40% stake in ILVA. • Blackstone Group has agreed to sell 33% stake in Industrie De Nora, an Italy-based provider of clean energy and water treatment technologies, to Snam. The acquisition allows Snam to increase its exposure to megatrends of the energy transition.

Importers and wholesalers, Iron and steel production

• Duferco Part Holdings SA has agreed to acquire a 50% stake in Duferdofin-Nucor Srl, an Italy-based JVformed for the production of beams in Italy and the distribution of beams, from Nucor Corp.

Venture Capital/Private Equity

• AURELIUS Equity Opportunities SE & Co. KGaA has agreed to acquire GKN Wheels Ltd, from GKN Plc, for an undisclosed consideration. • Post deal, GKN Wheels will be carved out from GNK group and will under a new brand name, as a standalone entity.

• AUCTUS Capital Partners AG has agreed to acquire majority stake in Profiltubi SpA from Alfieri family. Venture • The deal will strengthen Profiltubi’s presence in all its markets by broadening its product range and improving the Capital/Private Equity efficiency of its production facilities through new investments.

7


Main M&A Operations in Italy (2/4) (2019- 22 Feb. 2021)

M&A deals in the iron and steel & other metals production, metal ore or non-metallic ores or other mining activities or mining #

Date

Target

Target Geo

Target sector Industrial equipment and machinery,Iron and steel production,

Bidder

Bidder Geo

Bidder sector

Description

Modula S.p.A.

Industrial equipment and machinery, Numeric and computerised control of machine tools,Machine vision systems,Robotics

• Modula S.p.A. has acquired a 60% stake in MB S.r.l.,Italy-based company engaged in designing, manufacturing molds and producing metal products for third parties, for an undisclosed consideration. • The transaction is of strategic importance for MB as it will increases its competitiveness, efficiency, and production speed and simultaneously provide financial stability and continuity to its suppliers. • Hot Roll S.r.l. has acquired M4U Laminati S.r.l., the Italy-based mechanical processing of laminated rings company, from M4U S.r.l., for an undisclosed consideration. • Post-acquisition, M4U will active for the main national and international players in the automotive, railways and industrial automation fields.

9

Jul 20

MB S.r.l. (60% Stake)

10

Jul 20

M4U Laminati S.r.l.

Iron and steel production,Other metal products

Hot Roll S.r.l.

Automotive components,Other metal products

11

Jun 20

Mimest Srl (95% Stake)

Other metal products

A.M.F. Spa

Clothes

• A.M.F. Spa, a portfolio company of Alpha Group, acquired Mimest Srl from Sdn Holding. Terms pf the transaction were not disclosed.

Aerospace, Automotive components,Other metal products

Cherry Bay Capital MFO S.A.M.

Venture Capital/Private Equity

Fonderia Scaranello Srl

Iron and steel production,Other metal products

• Cherry Bay Capital MFO S.A.M. and group of private investors have acquired an undisclosed minority stake in Poggipolini Srl. • As part of the transaction, Cherry Bay will invest EUR 10m for the acquisition of minority stake and subscription of convertible debt securities. Through this deal, Cherry Bay will support Poggipolini to grow organically and through acquisitions which is in line with their strategy of making Poggipolini a leader in aeronautics sector of the Italian region.

Fonderie di Montorso SpA

Iron and steel production

Officine Tecnosider srl

Iron and steel production

Vanomet AG; Trasteel International SA

Financial Services

Other metal products

Profilati

Aluminium raw material production, Iron and steel production, Other metal products

Other metal products

VRM SpA

Automotive components

12

May 20 Poggipolini Srl

13

Apr 20

14

Apr 20

15

Pietro Galliani Mar 20 Brazing S.p.A. (49% Stake)

16

Feb 20

Top Finish 2002 SpA

• The acquisition will enable Fonderie di Montorso to expand its technological offer and strengthen its position. • The acquisition will assist Trasteel in becoming a diversified industrial group. Post-acquisition, the current management of Officine will be retained.

• Profilati has agreed to acquire a 49% stake in Pietro Galliani Brazing S.p.A., an Italy-based metals processing company from Messer Cutting Systems GmbH, for an undisclosed consideration. • VRM SpA, through its subsidiary Luxury Metal Finish, has acquired, Top Finish 2002 SpA, an Italy-based manufacturer of metal accessories for the fashion sector, from Genel Srl, Aurora Srl and Mr. Giovanni Spallina, for a consideration of EUR 50m. 8


Main M&A Operations in Italy (3/4) (2019- 22 Feb. 2021)

M&A deals in the iron and steel & other metals production, metal ore or non-metallic ores or other mining activities or mining #

Target sector

Bidder

Bidder sector

Description

17

CMSP Group (design and construction of Mar 19 molding machines); Kami Srl

Industrial equipment and machinery; Other metal products

SKF Industrie SpA

Industrial equipment and machinery, Industrial Services

• SKF Industrie SpA has acquired Kami Srl, an Italy-based company engaged in metal stamping and CMSP SpA’s business of design and construction of molding machines, an Italy-based manufacturer of metal stamping machinery, for a consideration of EUR 15m. • The transaction will strengthen the SKF’s opportunities in the automotive and industrial market.

18

Mecal Feb 20 Machinery Srl

Industrial equipment and machinery, Other metal products

Voilap Holding Srl

Industrial equipment and machinery

Loterios s.r.l

Industrial equipment and machinery,Other metal products

Balcke-Durr GmbH

Feb 20

Jan 20

Caleotto SpA (50% Stake)

Iron and steel production

Feralpi Group

Iron and steel production

21

Dec 19

Teksid S.p.a (Casting Iron Component business)

Iron and steel production

Tupy SA

Automotive components

• Tupy SA has agreed to acquire the casting iron component business of Teksid S.p.a, the Italy-based company that produces iron parts for engines and suspensions, and other components for the automotive and industrial vehicle sector, from Fiat Chrysler Automobiles N.V (FCA), for a consideration of EUR 210m.

22

Evraz Palini & Dec 19 Bertoli S.r.l.

Industrial products and services

Marcegaglia SpA

Iron and steel production

• Marcegaglia SpA, an Italy-based manufacturer and distributer of stainless steel, has acquired Evraz Palini & Bertoli S.r.l., an Italy-based manufacturer of rolled steel plates, from EVRAZ Plc, the listed UK-based producer and distributor of vanadium products, steel and related products and also owns and operates certain mining assets, for an estimated consideration of EUR 40m.

23

Nov 19

Iron and steel production

Xenon Private Equity S.a.r.l.

Venture Capital/Private Equity

• Xenon Private Equity has acquired Italian steel blades manufacturer CBG Acciai for an estimated minimum consideration of EUR 70m.

19

20

Date

Target

CBG Acciai

Target Geo

Bidder Geo

• Voilap Holding Srl has agreed to acquire Mecal Machinery Srl, an Italy-based company that specializes in the production of machines and systems for processing aluminum, PVC and light alloys for an undisclosed consideration. • The acquisition is strategically compelling to Voilap. The qualities of Mecal in product customization and production technologies will also upsurge the group's ability to serve customers in niche sectors that have specific needs.

Industrial equipment • Balcke-Duerr, a portfolio company of Mutares has acquired Loterios, an Italian designer and manufacturer of pressure and machinery, equipment. Refrigeration equip. • The deal will further expand Balcke-Duerr's Italian business and provide with broader product portfolio and cross-selling Ventilation/heating/ai opportunities from combined customer bases. r conditioning

Switzerland, UK, Italy, Luxembourg

• Feralpi Group has agreed to acquire a 50% stake in Caleotto SpA, an Italy-based producer of steel products, from Duferco Italia Holding S.P.A, for an undisclosed consideration. • The transaction is a result of the developments taking place in Feralpi & Duferco. The acquisition is in line with Feralpi’s strategy to make steel business its pillar entering new markets with high value.

9


Main M&A Operations in Italy (4/4) (2019- 22 Feb. 2021)

M&A deals in the iron and steel & other metals production, metal ore or non-metallic ores or other mining activities or mining #

Date

Target

24

Sep 19

25

Target Geo

Target sector

Bidder

Trafileria Lariana SpA (70% Stake)

Automotive components,Iron and steel production

Sep 19

Euromeccanica Group Spa

26

Jul 19

27

Bidder sector

Description

ORI Martin S.p.A.

Industrial equipment and machinery, Iron and steel production

• ORI Martin S.p.A., the Italy-based company engaged in steel production and long steel products for mechanical and special applications, has acquired a 70% stake in Trafileria Lariana SpA, the Italy-based manufacturer of drawing steel products for the automotive and mechanical engineering sector.

Other metal products

Mevis Spa

Automotive components, Other metal products

Hellenic Steel S.A.

Iron and steel production

Jordan International Co

Iron and steel production

Jul 19

C.M.I. Group (60% Stake)

Other metal products

Sabaf SpA

Household products, industrial equipment and machinery

28

Jun 19

Lizard S.R.L. (60% Stake); Rodigas S.R.L (60% Stake)

Industrial products and services

Zered SPRL; DSH SRL

29

May 19

Metalprint Srl

Other metal products, Packaging products and systems

H.I.G. Capital, LLC

30

May 19

Scame Forni Industriali SpA (80% Stake)

31

Mar 19

Stelmi Italia S.p.A.

Iron and steel production

ASO H&P Srl

32

Mar 19

Calvi S.p.A (26% Stake)

Industrial equipment and machinery, Iron and steel production

DeA Capital Alternative Funds SGR S.p.A.

Akos corporate Industrial equipment and machinery, Other finance Srl; ITAGO S.r.l. metal products

Bidder Geo

• Mevis Spa, an Italy-based manufacturer of metal components for the automotive sector, has agreed to acquire Euromeccanica Group Spa, an Italy-based company engaged in metal stamping and die casting, from Venezian and Gnoato families. • Jordan International Co, the US-based steel producer, has acquired Hellenic Steel S.A., a Greece-based company engaged in the business of steel making, under insolvency proceedings, for an estimated consideration of EUR 13m. • The acquisition will allow Sabaf to become the world’s leading manufacturer in hinges for household appliances and provides Sabaf with a leadership position on a global scale in hinges for household appliances.

• Zered SPRL and DSH SRL have acquired a 60% stake in Rodigas SRL, an Italy-based company manufacturing fabricated metal products including sliding brackets, folding electrogalvanized steel Industrial products brackets for air conditioning, photovoltaic and safety systems and Lizard Srl, an Italy-based company and services developing skills and services for installers in renewable energy, air treatment and fall protection sectors, for an undisclosed consideration. • H.I.G. Capital, LLC, the US-based private equity firm, has agreed to acquire an 85% stake in Metalprint Venture Capital/Private Srl, the Italy-based manufacturer of aluminum, copper and brass forgings, from Cerutti and Strazzari Equity families. • Akos corporate finance Srl, an Italy-based company specializing in designing, defining and implementation of corporate finance operations and ITAGO S.r.l., an Italy-based investment company, has acquired 80% Financial Services stake in Scame Forni Industriali SpA, an Italy-based company engaged in engineering and manufacturing of industrial equipment. • ASO H&P Srl., an Italy-based producer of steel hydraulic and pneumatic components, has acquired Stelmi Other metal products, Italia S.p.A., an Italy-based manufacturer of steel products, from Lebogest S.p.A., an Italy-based company pumps and compressors having interest in the manufacture of steel products. Venture Capital/Private Equity

• DeA Capital Alternative Funds SGR, an Italy-based private equity and venture capital firm, has agreed to acquire a 26% stake in Calvi S.p.A, an Italy-based company engaged in manufacturing of special steel profiles, from Chini family, an Italy-based family.

10


Main M&A Operations in Europe (1/4) (2019- 22 Feb. 2021)

M&A deals in the iron and steel & other metals production, metal ore or non-metallic ores or other mining activities or mining #

Date

Target

34

Feb 21

35

Target Geo

Target sector

Bidder

Bidder Geo

Bidder sector

Sibanthracite Group

Mining

Albert Avdolyan (Private Investor)

Energy, Leisure, Telecommunications

• Albert Avdolyan has agreed to acquire Sibanthracite Group, a Russia-based company engaged in the production and export of UHG anthracite and production of metallurgical coal, from Alltech Group for an estimated consideration of USD 1bn.

Jan 21

Sydvaranger Mining AS

Industrial products and services, Mining

Tacora Resources, Inc.

Industrial products and services, Mining

• Tacora Resources Inc., has acquired Sydvaranger Mining AS, a Norway-based iron ore mine and processing plant, from Tschudi Shipping Company AS, for an undisclosed consideration. The deal is in line with Tacora's strategy to deliver high grade iron ore products to steelmakers.

36

Jan 21

Kumas Manyezit Sanayi A.S.

Construction, Mining

Eregli Demir Celik Fabrikalari T.A.S. (Erdemir)

Industrial products and services

• Gozde Private Equity and Yıldız Holding have agreed to sell their stake in Turkey-based Kumas Manyezit to Erdemir, for an enterprise value of USD 340m. The acquisition will help Erdemir to integrate its activities in the iron, steel, and cement sectors. The transaction is subject to legal approvals.

37

Dec 20

CRONIMET Belgium NV

Industrial products and services

Aperam Stainless Services & Solutions Benelux

Industrial products and services

• Aperam Stainless Services & Solutions Benelux has acquired CRONIMET Belgium NV¸ a Belgium-based company engaged in processing and sale of steel scrap metals, from CRONIMET Holding GmbH, for an undisclosed consideration.

38

Dec 20

Primetals Technologies France S.A.S.

Industrial products and services

Mutares AG

Financial Services

• Mutares has agreed to acquire Primetals Technologies France, a supplier of high-end steel processing line solutions from its UK parent Primetals Technologies. The acquisition will strengthen Mutares’ Engineering & Technology segment as a new platform investment. The transaction is subject to approval.

Feon Oy

Industrial products and services, Services (other)

• Feon Oy has acquired Oy Kontino Ab, a Finland-based company engaged in sale and processing of steel for construction and engineering industries, for an undisclosed consideration. Through this acquisition, Feon will be able to increase its geographical presence, expand its market share, support its growth strategy, enhance its product offering, improvise its digital platform of steel e-commerce services, expand its customer base and distribution network.

39

Dec 20

Oy Kontino Ab

Industrial products and services, Services (other)

40

Dec 20

ZAO Yuzhkuzbassugol

Mining

PAO Raspadskaya

Energy, Mining, Transportation

41

Nov 20

Terasjaakko Oy

Industrial products and services

Lomes Oy Ab

Financial Services

Description

• PAO Raspadskaya has agreed to acquire ZAO Yuzhkuzbassugol, a Russian company engaged in coal mining and a wholly owned subsidiary of EVRAZ plc. • Lomes Oy Ab has acquired Terasjaakko Oy, the Finland-based company engaged in manufacturing steel products, for an undisclosed consideration.

11


Main M&A Operations in Europe (2/4) (2019- 22 Feb. 2021)

M&A deals in the iron and steel & other metals production, metal ore or non-metallic ores or other mining activities or mining #

Date

Target

42

Oct 20

43

Target sector

Bidder

KAZ Minerals PLC (60.61% Stake)

Industrial products and services, Mining

Nova Resources B.V.

Mining

Oct 20

Highland Gold Mining Ltd

Mining

Fontana Holdings Limited

Financial Services

44

Aug 20

British Steel France Rail SAS (Hayange mill); Ascoval SAS

Industrial products and services; Industrial products and services

Liberty Steel Group

Industrial products and services

45

Jul 20

Grupo Gallardo Balboa SL

Industrial products and services

Cristian Lay SA

Consumer: Other

46

May 20

ArcelorMittal Ringmill SA

Industrial products and services

Callista Private Equity GmbH & Co. KG

Financial Services

• Callista Private Equity has acquired 100% equity of ArcelorMittal Ringmill, a manufacturer of seamless steel rings and tyres, from Industeel Belgium, ultimately owned by ArcelorMittal.

47

May 20

Metallo Group

Industrial products and services

Aurubis AG

Industrial products and services

• Aurubis AG has agreed to acquire Metallo Group (collects, processes, recycles and sells nonferrous metals) from TowerBrook Capital Partners L.P and Alpha Group

48

Apr 20

Oy AluSteel AB

Feon Oy

Industrial products and services, Services (other)

Apr 20

Elgaugol JSC; Elga-Doroga OOO; Mecheltrans-East OOO

Industrial products and services, Services (other) Mining; Transportation

A-Property LLC

Energy

49

Target Geo

Belgium, Spain, Luxemb.

Bidder Geo

Bidder sector

Description • Nova Resources B.V., the Netherlands-based company controlled by Oleg Novachuk and Vladimir Kim, has agreed to acquire the remaining 60.61% stake in KAZ Minerals PLC, the UK-based and listed company engaged in copper mining, processing, smelting and refining. • Fortiana Holdings limited, the Cyprus-based company controlled by Russian investor Vladislav Sviblov, has agreed to acquire a 40.06% stake in Highland Gold Mining Ltd ("Highland") [HGM], Russia-based, Channel Island domiciled, UK-listed, gold mining company followed by a recommended mandatory public offer to acquire the remaining shares. • Liberty House Group had acquired Ascoval SAS, the France-based owner and operator of a steel mill and Hayange mill from British Steel France Rail SAS, a subsidiary of British Steel Limited, for an undisclosed consideration. • This acquisition will help in creating an integrated GREENSTEEL rail business in France and will save around 700 jobs. • Kohlberg Kravis Roberts & Co has agreed to sell Grupo Gallardo Balboa, to Cristian Lay. Cristian Lay will acquire the company for around EUR 120m. • The transaction has the acceptance of majority of the financial creditors and includes a restructuring of the financial debt, which would reduce it by EUR 440m. The agreement includes a commitment by Cristian Lay to assume the rest of the debt, which includes working capital lines, and other instruments amounting to around EUR 145m.

• Feon Ltd. Has acquired Oy AluSteel AB, a Finland-based wholesaler of standard and fixed steels, for an undisclosed consideration. The transaction will enable Feon to expand its operations in the Finnish market. The transaction will also enable both the companies to expand their product base. • A-Property LLC has acquired a 51% stake in Elgaugol OOO, a Russia-based operator of Elga coking coal development project, Elga-Doroga OOO, a Russia-based company that owns the Ulak-Elga railroad and Mecheltrans-East OOO, a Russia-based operator of Ulak-Elga railroad (collectively known as Elga Group), from Mechel OAO, for a consideration of RUB 89bn (USD 1.16bn). In March 2020, A-Property LLC acquired a 49% in all three companies. 12


Main M&A Operations in Europe (3/4) (2019- 22 Feb. 2021)

M&A deals in the iron and steel & other metals production, metal ore or non-metallic ores or other mining activities or mining #

Date

Target

50

Apr 20

51

Target sector

Bidder

Bidder sector

Description

Aleris Aluminum Duffel BVBA

Industrial products and services

GFG Alliance Ltd

Financial Services, Industrial products and services

• GFG Alliance Ltd, the UK-based international group of businesses which consists of industrial, natural and financial resources in order to provide industrial services, has agreed to acquire Aleris Aluminum Duffel BVBA, the Belgium-based mill of Novelis that produces rolled products from aluminum and special alloys for an undisclosed consideration.

Mar 20

British Steel Limited

Industrial products and services

Hebei Jingye Group

Industrial products and services

• Hebei Jingye Group, a China-based steel company, has agreed to acquire British Steel Limited, the UKbased company that manufactures and processes steel in an insolvency transaction, for an estimated consideration GBP 50m.

52

Mar 20

VDM Metals GmbH

Industrial products and services

Acerinox, S.A.

Industrial products and services

• Acerinox, S.A. (Spanish stainless steel producer) has agreed to acquire 100% of VDM Metals GmbH from Falcon Metals B.V. and Lindsay Goldberg LLC.

53

Feb 20

En+ Group plc (21.37% Stake)

Energy, Industrial products and services, Mining

En+ Group plc

Energy, Industrial products and services, Mining

• En+ Group, the listed Russia-based vertically integrated aluminium and hydro power producer, has agreed to acquire a 21.37% of its stake from VTB Group in a buyback transaction.

54

Feb 20

Petropavlovsk Plc (22.39% Stake)

Mining

Uzhuralzoloto Group of Companies (UGC)

Mining

• Uzhuralzoloto Group of Companies (UGC) has agreed to acquire 22.39% stake in Petropavlovsk Plc, the listed UK-based company focused on the production of gold and silver in Russia, from Roman Trotsenko.

55

Feb 20

En+ Group plc (10.55% Stake)

Energy, Industrial products and services, Mining

Glencore Plc

Agriculture, Energy, Mining

56

Dec 19

GeoSteel LLC (39% Stake)

Industrial products and services

Georgian Steel Group Holdings B.V.

Industrial products and services

57

Dec 19

First Quantum Minerals Limited (18.02% Stake)

Mining

Jiangxi Copper Co., Ltd.

Industrial products and services, Mining

Nov 19

Grosvenor Coal Mine (12% Stake)

Mining

Mitsui & Co., Ltd.; Nippon Steel Corporation; Shinsho Corporation; NIPPON STEEL TRADING CORPORATION; JFE Mineral Company Ltd

Industrial products and services; Services (other); Mining

58

Target Geo

Bidder Geo

• Glencore Plc has agreed to acquire a 10.55% stake in En+ Group plc. • Glencore Plc, is a listed Switzerland-based natural resources company, headquartered in Baar. • Georgian Steel Group Holding Ltd, has agreed to acquire a 39% stake in GeoSteel LLC, a Georgia-based steel manufacturer, from JSW Steel (Netherlands) B.V., for a consideration of USD 23.08m. Pursuant to transaction, JSW Steel will retain 10% in GeoSteel. • Jiangxi Copper Co., Ltd. (listed China-based company engaged in mining, smelting and processing of copper products) has agreed to acquire an 18.02% stake in First Quantum Minerals Limited (listed Canada-based mining company engaged in mineral exploration, development and mining) from Pangaea Investment Management Limited. • A consortium of Japanese companies have agreed to acquire 12% stake in Grosvenor coal mine, an Australia-based coal mine, from Anglo American Plc, the UK-based listed mining and natural resources group, for a consideration of USD 141m.

13


Main M&A Operations in Europe (4/4) (2019- 22 Feb. 2021)

M&A deals in the iron and steel & other metals production, metal ore or non-metallic ores or other mining activities or mining #

Date

Target

59

Oct 19

Abraservice Holding

60

Oct 19

Harry Peers Steelwork Limited

Aug 19

John Parker & Son Limited (Canterbury, Andover, and Waterbeach businesses)

Industrial products and services

62

Jul 19

ZAO Severstal Long Product Mill Balakovo

Industrial products and services

Abinsk Electric Steel Works OOO

Industrial products and services

63

Jun 19

Muenker Metallprofile GmbH

Construction, Industrial products and services

ArcelorMittal Construction Deutschland GmbH

Construction, Industrial products and services

64

Apr 19

247TailorSteel B.V. (60% Stake)

Industrial products and services

Parcom Capital Management B.V.

Financial Services

65

Dec 18

NPO Akhtuba, ZAO

Industrial products and services

VIY Management

Financial Services

61

Target Geo

Target sector

Bidder

Industrial products and services

SSAB

Construction, Industrial Severfield-Rowen products and services Plc

ParkerSteel Limited

Bidder Geo

Bidder sector

Description

Industrial products and services

• SSAB, the listed Sweden-based steel producer, has agreed to acquire Abraservice Holding, a Francebased distributor of wear resistant steels, from Jacquet Metals SA, the listed France-based distributor of stainless steels and nickel alloys, for a consideration of USD 49m.

Construction, Industrial products and services

• Severfield-Rowen Plc, the listed UK based structural steel manufacturing group, has agreed to acquire Harry Peers Steelwork Limited, the UK-based company engaged in project management, design, fabrication and erection of structural steelwork contracts, for a consideration of GBP 25m.

Industrial products and services

• ParkerSteel Limited has acquired the Canterbury, Andover, and Waterbeach businesses of John Parker & Son Limited, the UK-based company manufacturing and distributing steel products, for a total consideration of GBP 10.159m, under insolvency proceedings. • Abinsk Electric Steel Works, a Russia-based producer of reinforcing bars and other long products has agreed to acquire ZAO Severstal Long Product Mill Balakovo, a Russia-based company engaged in production of steel and manufacturing of long products in the high-speed rolling mill for construction industry from Severstal PAO, a listed Russia-based mining company and steel producer, for a consideration of USD 215m. • ArcelorMittal Construction Deutschland GmbH, the Germany-based company that develops components and solutions for building envelope steel products, lightweight steel structures, secondary and substructures and ceiling systems, and a subsidiary of ArcelorMittal SA, the Luxembourg-based steel producer and mining company, has acquired Muenker Metallprofile GmbH, a Germany-based manufacturer of components for lightweight metal construction, for an undisclosed consideration. • Parcom Capital Management B.V., the Netherlands-based private equity firm, has agreed to acquire a 60% stake in 247TailorSteel B.V., the Netherlands-based steel cutting company, from Mr. Carel van Sorgen, the Netherlands-based private individual, for an estimated enterprise value of EUR 100m. • VIY Management, the UK-based private equity firm, has acquired a majority stake in NPO Akhtuba, ZAO, a Russia-based company engaged in manufacturing spun-cast steel pipes and equipment for metallurgical, petrochemical, and energy industries, for a total consideration of EUR 4.82m.

14


Contacts Max Lehmann

Nicola Anzivino

Partner Industrial, Manufacturing & Automotive Italian Deals Leader, PwC Italy

Partner Industrial, Manufacturing & Automotive EMEA Deals Leader, PwC Italy

max.lehmann@pwc.com

nicola.anzivino@pwc.com

Emanuela Pettenò

Massimo Benedetti

Partner Transaction Services Markets Deals Leader, PwC Italy

Partner Deals Leader, PwC Italy

emanuela.petteno@pwc.com

massimo.benedetti@pwc.com


Thank you!

This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors. © 2021 PwC. All rights reserved. Not for further use and distribution without the permission of PwC. “PwC” refers to the network of member firms of PricewaterhouseCoopers International Limited (PwCIL), or, as the context requires, individual member firms of the PwC network. 16


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