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