Despite a worldwide reduction in the volume of mergers and acquisitions in the ironworks industry, operations in Brazil grew by 52%. The figure, which concerns last year, is part of a survey conducted by PricewaterhouseCoopers (PwC). Turnover from deals closed in the segment, in Brazil, which totaled US$ 9.7 billion in 2007, leapt to US$ 14.8 billion in 2008.
Brazil answered to 24% of the global business volume and was responsible for the sector's turnover in South America. According to PwC, a large number of deals took place in the iron ore sector.
The consultancy firm adds that China and Russia also posted positive figures. The deals concluded in the Asian Pacific region totaled to US$ 16.4 billion. In 2007, the total was US$ 7.2 billion. The growth was 127%.
In the United States, on the other hand, ironworks industry mergers and acquisitions fell sharply, from US$ 76.7 billion in 2007 to US$ 15.8 billion last year. The main contributing factor was the decline in investment in the fields of steel and aluminum.
The most important deal during the period was closed by Russian company Evraz, which purchased the United States-based pipe-manufacturing arm of IPSCO from the Swedish SSAB for US$ 4 billion.
The global ironworks scenario is imbalanced, with some companies facing big problems and others recording relatively healthy growth rates and attaining record-high investment levels, according to Jim Forbes, the global metals head at PwC.