EY notes that after the fifth consecutive year of declining deal volume and values, increasing levels of financial distress will trigger more divestments, spin-offs, joint ventures and possibly hostile takeover bids.
With few options left to salvage investments hit by a prolonged downturn in commodity prices, more shareholders are demanding change at miners they perceive to have strong assets but weak boards and management.
The first green shoots of a mining rally showed themselves in the fourth quarter, according to a new report from EY describing the performance of the Canadian Mining Eye Index.