The current environment of uncertainty and anxiety inevitably took its toll on the M&A market. Globally, M&A value and volume fell significantly from levels observed in the previous quarter, even when the Glencore/Xstrata mega-merger is removed from the comparison.
By value, Canadian mining M&A was generally in line with levels experienced in Q1 2012; although as noted last quarter, these levels are depressed relative to 2011 levels considered more normal. One bright spot is that transaction volumes rebounded significantly, reflecting a larger number of small deals—an inevitable side effect of falling share prices.