Diamond Market Experiencing M&A Downturn

The Financial Post reported that though there has been little M&A activity in the diamond space lately, some “intriguing possibilities” remain.

As quoted in the market news:

RBC Capital Markets analyst Des Kilalea thinks there were a lot of missed opportunities, as some miners needed to raise capital and others were in a position to provide balance-sheet support. Several of the firms that needed money are either raising it on their own or have already done so, meaning the financial synergies of M&A are disappearing.

Kilalea said:

The chance of deals being concluded is diminishing as companies complete capital raising exercises on their own. Nevertheless, there remain some intriguing possibilities. It may take a downturn in prices [not in the cards, we believe] or some stumbles in the building of new projects to trigger mergers.

Click here to read the full Financial Post report.