The standoff between buyers and sellers in the mining sector has put the skills and patience of bankers to the test. According to Reuters, global mining companies were seeking to sell their mining assets after a year of expansion didn't end up well for their investors. The mining firms, however, were not willing to let go of their assets at a bargain as continued Chinese demand for iron ore buoyed up the price of the metal. On the other hand, buyers wanted to purchase the assets for cheap.
Reuters reported that the lengthy auctions cost banks manpower. However, the lenders continued to oversee impossible transactions to maintain their relationships with clients.
Macquarie Capital Global Head of Natural Resources Robert Dunlop told Reuters, "People are throwing themselves at fairly difficult mandates for nothing."
Thomson Reuters data revealed that the clash had resulted to a decline in the deals made in the metals and mining sector. So far, transactions this year only amounted to about USD 64 billion. This only comprised half of the transactions made in the same time period last year.
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