Acquisition in the mining sector of Austrailia Essay

Acquisition in the dig sector of Austrailia - Essay ExampleTo strengthen their pecuniary position dominant players of this industry across world, and especially in Australia turned to mergers and skills. Year 2011 witnessed global mergers and acquisition of $.162, 439 trillion with 43percent higher than previous social class in terms of time value (e Ernst & Young, 2012). In Australia alone, total value of M&A deals in mine and metal sectors in family 2011 was $.38, 594 million as compared to $.23, 469 million in the year 2010. Mergers and acquisitions in mining and metal sectors of Australia also witnessed large inbound and outbound deals. This radical sheds lights on the aim and objective of these deals based on two case studies from Australian mining sector. matter studies used for the purpose are telamon Iron acquiring Giralia resources ($.805 million) and BHP Billiton acquiring HWE mining ($.732 million). Both deals been successfully completed in year 2011with both pa rties of two deals belonging to same continent. The two case studies witnessed boilersuit aim of acquisitions by two firms to compound their resource base, increased synergy in their operations and narrow low risk transactions. The capital agenda guiding these transactions was to preserve, optimize, raise and invest capital (e Ernst & Young, 2012). Atlas Iron acquiring Giralia resources was mainly driven by motif to increase it resource base. BHP Billiton acquiring HWE mining was aimed to improve synergy and efficiency in operation with undertaking contractor firm within BHP Billitons umbrella. Successful fulfilment of deals benefitted both parties as well as their shareholders. In the end with reference to the faculty member literature both deals are discussed to extract level of alignment and support from literature. Table of Contents administrator SUMMARY 1 ACQUISITION IN THE MINING SECTOR OF AUSTRAILIA 4 ATLAS IRON getting GIRALIA RESOURCES 8 DEAL DETAILS 9 BHP BILLITON ACQ UIRING HWE MINING 12 DEAL DETAILS 12 SUPPORT FROM LITERATURE 13 TRANSACTION ALLIGNMENT WITH LITERATURE 15 CONCLUSION 16 REFERENCES 17 submission Australia stands on the leading position on mega acquisitions table with Australian BHP Billiton acquiring Petrohawk Energy of US (Oil & blow out sector) with $.11, 776 million in cross border acquisition (e Ernst & Young, 2012). Mining sector of Australia also remained active to enhance its capacity, strengthen operations and portfolio. With considerable activity of Australian companies in acquisitions in the year 2011, this report leave explore various areas of these acquisitions. Two inbound acquisitions deals in Australia with Atlas Iron acquiring Giralia resources ($.805 million) and BHP Billiton acquiring HWE mining ($.732 million) in focus, following areas are explored and discussed in this report Were both deals able to achieve success completion within defined time? Details of both details. Type and level of discrepancy arisen, if any. For instance oppositeness from management or shareholders etc. Overall aim of the acquisition Benefits to the acquirer and Benefits to the target firm (acquired firm). aim of support these deals can leverage from the academic literature. ACQUISITION IN THE MINING SECTOR OF AUSTRAILIA In the year 2011, the mining and metal sectors have successfully emerged as strong sector with growth trend after(prenominal) riding the high global economic uncertainty. Among other options to raise capital, mining sector provided an ideal surroundings for mergers and acquisitions specifically however, while total deal value was up 43% on the prior year to $162.4bn, volumes were down 10% to 1,008 deals, highlighting the difficulty in evaluating, financing and executing deals (e Ernst & Young, 2012). (e Ernst & Young, 2012) (e Ernst & Young,