Outlook 2020
More M&A in resources
30 January 2020
Expect more merger and acquisition activity in the resources sector in the New Year, as the push seen in 2019 from larger mining players looking to grow through consolidation continues.
In 2019 mining saw heightened M&A activity from mid-to-large cap companies seeking growth amid conducive conditions. Looking ahead, there will be continued opportunities for businesses wishing to move to the next stage of operations in 2020.
Indeed, at ANZ we see a variety of different opportunities and challenges for businesses in the year ahead across the mining, infrastructure and energy sectors.
In energy, 2019 was a busy year for the Australian renewable industry. However we will see a bit of a slowdown in 2020 due to the constraints these projects are putting on an ageing transmission network.
Therein lies opportunities for customers and ANZ to work together to evolve and modernise the Australian energy system.
Oil and gas continues to be an active sector. We see continued asset portfolio rationalisation in Asia Pacific providing acquisition opportunities for growth companies. In LNG the transition to a lower-carbon economy will create significant opportunities in the region, chiefly in Papua New Guinea and in parts of Asia as well.
Outlook 2020
The New Year is upon us. The year 2020 looms as a landmark one for the global economy as trade, technological and environmental factors drive change at a scale rarely seen.
At ANZ Institutional, we aim to help our customers put themselves in the best possible position to take advantage of these forces. Our subject-matter experts have the insight to offer market-leading thought leadership in a range of complex areas from across more than 30 global markets.
We asked our experts about the key factors they see shaping markets and industry in 2020 – and the opportunities and challenges within. We’ll be sharing the responses with you over the coming weeks.
In the infrastructure market, ANZ expects to see more investment across major capital cities in response to rising population levels.
The pipeline of state government projects across road, rail, water treatment and healthcare will continue to grow.
The challenge for 2020 will be the level of activity in the market and the capacity of the Australian contracting sector to respond to that.
Paul Orton is Head - Project & Export Finance, Institutional Banking, ANZ
This publication is published by Australia and New Zealand Banking Group Limited ABN 11 005 357 522 (“ANZBGL”) in Australia. This publication is intended as thought-leadership material. It is not published with the intention of providing any direct or indirect recommendations relating to any financial product, asset class or trading strategy. The information in this publication is not intended to influence any person to make a decision in relation to a financial product or class of financial products. It is general in nature and does not take account of the circumstances of any individual or class of individuals. Nothing in this publication constitutes a recommendation, solicitation or offer by ANZBGL or its branches or subsidiaries (collectively “ANZ”) to you to acquire a product or service, or an offer by ANZ to provide you with other products or services. All information contained in this publication is based on information available at the time of publication. While this publication has been prepared in good faith, no representation, warranty, assurance or undertaking is or will be made, and no responsibility or liability is or will be accepted by ANZ in relation to the accuracy or completeness of this publication or the use of information contained in this publication. ANZ does not provide any financial, investment, legal or taxation advice in connection with this publication.