2017 Energy Mining & Utilities (EMU) report
Cross-hairs on South America and Africa: Investments in South America and Africa saw near-record numbers in 2017, as companies stabilized and adapted operations to the new price reality. EMU inbound into South America reached a record high of 62 deals in 2017, almost 50% more than 2016. At the same time, transactions targeting African EMU assets hit a nine-year high with 58 deals, a massive 53% increase compared to 2016
China’s record-breaking foray: One of the countries that led the charge on inbound transactions in 2017 was China, with Chinese companies executing a record 10 transactions for South American and African EMU assets. Instead of traditional Oil & Gas space, Chinese buyers have been looking to acquire Power Generation and Mining assets in the region.
A Mining renaissance: Mining sector experiencing a resurgence in 2017 to the tune of 227 deals valued at US$ 33.4bn. There has been a clear shift in appetite for Mining assets due to what is expected to be significant demand for minerals and metals such as copper, lithium, and cobalt (amongst others) – attributable to the ever-increasing Electric Vehicle market.