Report says mining mergers may reach ‘astronomical levels’ in 2008

{mosimage}Industry analysts believe mining company mergers may reach “astronomical levels” in 2008. In a report released by PricewaterhouseCoopers LLP, it was noted that mining mergers reached a record $159 billion in 2007 and are expected to reach higher levels this year.

Industry analysts believe mining company mergers may reach “astronomical levels” in 2008.

In a report released by PricewaterhouseCoopers LLP, it was noted that mining mergers reached a record $159 billion in 2007 and are expected to reach higher levels this year.

“No company can stand aside in this `eat or be eaten' environment,'' Tim Goldsmith, PricewaterhouseCoopers' global mining analyst, said. “The biggest companies are positioning themselves to achieve super-consolidated global scale.''

Analysts have noted that mergers are being fueled by record price levels of mining commodities, including coal and copper. In developing countries such as Russia and China, where there is a growing demand for minerals, there was a six-fold increase in mining mergers in 2007 valued at $32.7 billion.

In the event BHP Billiton Ltd. succeeds in its hostile takeover bid of Rio Tinto Group, the $146 billion offer would create the largest-ever mining deal.

mongolia-web.com