Credit to
@billyen on the GLN threads, but applies equally here ......huge!
https://unauthorised investment advice/resources/...re-prime-takeover-targets-for-the-majors/amp/
Why ASX battery metals juniors are prime takeover targets for the majorsResources
7 hours ago |
Angela EastJuniors in the battery metals space are looking attractive to the bigger miners and the good news is they will likely bring a premium with all the bargains now gone.
Merger and acquisition (M&A) activity is already on the rise across the broader resources sector, with several deals being tabled at a premium.
But those in the industry say battery metals players are particularly attractive as demand soars and supply dries up and the majors look to cash in on the electric vehicle revolution.
“There were a few battery metals type acquisitions a little while ago and people are looking around for assets still,” says deal-maker Dominic Marinelli who largely focuses on deals worth between $5m and $150m.
M&A activity in the battery metals space is picking up says Mr Marinelli, a director of Terrain Capital which works on deals with partner Globalscope International M&A Advisors.
“[But] a lot of the low-hanging fruit has probably been snapped up already,” he told
*on the sidelines of the International Mining and Resources Conference in Melbourne this week.
“You’d find it hard to find a large resource now at a good price. It’s all about price.
“There’s lots of people exploring in that area at the minute and I expect there will be more M&A in that space.”
Mr Sage has headed other junior resources companies that have been swallowed by larger players in lucrative deals.
While there is still some work to be done before M&A will increase further,
large suitors will likely pay a premium to snag a deal.“These small microcaps are severely undervalued at the moment I believe, and they will become very valuable,” Mr Martino said.“It happens all the time, we do the hard yards and they like to just come along, but they’ll pay a premium.”
(20min delay)