Merger and acquisitions activity in the global mining sector is expected to accelerate in 2011, fueled by strong commodity prices and repaired balance sheets, advisory and accountancy firm Ernst & Young said on Wednesday.
Early signs that bank lending may recover this year will give a further boost to the level of deals this year, it said.
Total M&A deal value surged 89 percent to $113.7 billion last year, with a jump in cross-border deals in emerging markets, even with limited access to debt funding.
Mining and metals companies could return this year to earnings levels close to the 2007 peak, he said.
BHP Billiton （BHP.AX）（BLT.L） and Rio Tinto （RIO.AX） （RIO.L）, flush with cash as demand from China leads a commodity price boom, announced billion dollar buybacks and strong expansion plans alongside recent results.
However, BHP's Chief Executive Marius Kloppers said last week that the commodity cycle had raised price expectations for potential assets.
Miners are more cautious over debt levels this time around, he noted, so they can better manage the downside if prices fall.
豫公网安备41010502003434号