Canadian Imperial Bank Of Commerce Was The Top Dealmaker In The Mining Industry In The First Quarter


GlobalData recently released a report highlighting a major year-over-year increase in mining and metal sector deals in the first quarter of 2019 and the Canadian Imperial Bank Of Commerce (CIBC) was the top deal maker.

The GlobalData report revealed that there was a 6.3% growth in deal value to $22.5 billion USD in Q1 this year. It marked a significant jump from the $21.2 billion USD that was reported in the previous year. Although there was an overall deal value increase, the number of deals reported in Q1 2019 was 327, marking an 8.7% decrease from the 358 deals reported in Q1 2018. CIBC topped the list in terms of securing the biggest deal in the sector in Q1 2019.

CIBC managed to secure the top spot with two major deals worth $18.7 billion USD. It even managed to outshine M. Klein & Company. Meanwhile, the top mergers and acquisition legal advisors in the metal and mining sector include Davies Ward Phillips & Vineberg and Cravath Swaine & Moore. The four legal advisors collaborated in Barrick Gold’s attempt to acquire Newmont Mining which was founded in February this year. The planned acquisition did not go as planned but the two firms collaborated on Nevada operations to form the largest gold-mining efforts in the world.

CIBC makes leadership changes

The Canadian bank recently announced changes to its leadership which included the appointment of Ed Dodig as the new head of CIBC’s retail investment division called CIBC Wood Gundy. Ed Dodig is the brother to Victor Dodig, the current CEO of CIBC. The bank announced through an internal memo that the leadership changes will help boost client relationships and also facilitate the improvement of leadership capabilities.

CIBC noted that Ed previously played a vital role in growing its global market and was recently involved in the bank’s team in charge of equity markets. His role in the equity markets team will be temporarily occupied by Anton Erdody. Meanwhile, Stephen Forbes, the former head of banking centers will become CIBC’s new executive VP of brand, purpose, and marketing.

“We have a robust internal talent management process with a focus on moving leaders across our bank to foster collaboration,” stated CIBC representative, Tom Wallis.

Metal and mining stocks lose traction

The metal and mining industry continues to experience a decline in the value of its stocks amid concerns that the ongoing U.S-China trade negotiations will not yield expected results. Some of the metal and mining companies whose stock have experienced the largest decline include Indian firms JSW Steel Limited Fully Paid Ord. Shrs (NSE:JSWSTEEL) and Tata Steel BSL Ltd (NSE:TATASTLBSL) among others.

Metal and mining industries not only in the U.S but also in other countries such as India and China among others are expected to take a hit if the trade talks fail to materialize. This means that the mining industry stocks might continue to take a hit if the trade wars prevail. Meanwhile, a U.S legislator recently proposed the introduction of regulation aimed at streamlining mine development particularly for the supply of electric vehicle materials.

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