Sovereign wealth funds from the Middle East, and Japanese and Korean companies are seeking mining acquisitions and investments after asset values dropped, competing with Chinese companies, UBS AG said.
“This is the time to do that because asset values are low,” Paul Knight, managing director and joint global head of metals and mining with UBS, said today. “The Koreans are looking at acquisitions, and the Japanese to some extent.”
China last month agreed to invest $22 billion in commodity producers including Rio Tinto Group as indebted companies seek funds after the global recession and credit crunch spurred a collapse in metal prices and lending. Sovereign wealth funds may be diversifying after losing more than $60 billion since the onset of the credit crisis after investing in financial stocks.
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