M&A activity in the mining and natural resources sector continued during the pandemic, thanks to gold and other commodities seeing increases in price. With buyers armed with more cash and with sellers seeing their company valuations rise, all types of companies have been in play. With demand to improve efficiencies, generate more revenues from assets and find new mines to expand into, the transactions will most likely continue.
The mining sector has historically experienced challenges with valuations and effectively integrating acquisitions into their operations. Sellers often have to deal with price disputes and warranty and indemnity claims. Ultimately, both sides seek to have deals run more efficiently and result in more effective integrations.
Our Mining Group, which has worked on countless M&A transactions over the years, helps clients better understand the risks that a transaction could pose and we factor those issues into negotiations and pricing. We’ve worked with many of the world’s leading mining companies to negotiate more efficient pricing, improve sale and purchase agreements, and achieve faster integration and better corporate governance.
As this industry continues to consolidate, it’s important to work with a law firm that has the industry knowledge and M&A expertise to help you take advantage of all the opportunities in this sector.