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