Mergers and acquisitions: Mining industry coming back strong

The mining industry in the country is poised for a major comeback, especially in the gold sector. The industry is gaining strength in Canada thanks to a number of recent mergers and acquisitions deals worth billions of dollars. Industry experts believe the last quarter of 2018 was a turning point for the industry and expect consolidations to continue to pave the way for additional growth.

With much-needed capital often short, these mergers make it more feasible for companies to seek financial backing. These consolidating companies usually sell off what they consider to be nonessential assets, which creates further growth in the industry. Now, instead of focusing on how to stay afloat, corporations are considering opportunities for expansion.

Recent growth among the top 25 companies in Canada has mainly been fueled by gold and potash. Gold, however, continues to lead the pack with 21 companies involved with the metal in some form -- up from 19 companies in 2017. Along with mergers and acquisitions, these corporations are also focusing on ways to increase and improve performance using new technological advances to do so. The cascading effect is positive with stock numbers looking promising as the mining industry moves through 2019.

Mergers and acquisitions can be a complex part of the business world in Canada. Having an experienced lawyer on the team may make it easier to navigate the often confusing laws that accompany such deals. Having a lawyer review any potential transactions may make any additions to business portfolios go much more smoothly and without additional stress.  

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