The Nuclear Crisis in Japan on March 11, 2011 has in a way Provided enough fodder for The Industry which was Projected to Witness a surge in M&As. As Nuclear Projects Globally are Adopting ‘adjust and Improve’ Strategy Projects, The Inorganic mode will Gradually pick up...
Moreover, with the expiry of the highly enriched uranium deal between US and Russia in 2013, a big chunk of secondary supply of uranium will be out of the market and thus the junior exploration companies are bound to witness a lot of M&A activity.
The cloud over the uranium deals post the Fukushima disaster has been cleared. There is no question that the deals will be derailed. In fact, the inorganic route has in a way begun; Russia’s JSC Atomredmetzoloto (ARMZ) is on an acquisition drive at present and is all set to acquire uranium assets in southern Tanzania from Australia’s Mantra Resources for $944 million. ARMZ has also been given the green light by the United States to a 51% takeover of Uranium One in Canada. Extract Resources Ltd, is also expected to go ahead with a proposed $1.7 billion uranium venture in Namibia, while China’s Guandong Nuclear Power Group has already made a $756 million offer to Kalahari Minerals. Add to this the fact that uranium companies ranging from Australia-based Toro Energy Ltd to Toronto-based Mega Uranium Ltd are so depreciated (e.g. Mega Uranium’s share price has plunged 32% between March 11, 2011 and April 25, 2011) that they have now become prime takeover targets. As a matter of fact, M&A activities involving Canadian uranium exploration companies are likely to pick up in 2011 itself; a view very much shared by analysts at GMP Securities.
Statistics from London-based World Nuclear Association reveal that while there are 442 nuclear power plants, 54 of them are in Japan alone and about 60 reactors are currently under construction or refurbishment in 12 countries. Also, uranium – with a half life varying from 700 million years to 4.47 billion years (depending upon the isotopes) – is in deficit. To meet the energy requirements of the world, it is imperative that the world realises the inevitability of consolidation in the uranium industry. While the current disaster in Japan urges the need for better safeguards to be put in place, the current energy dynamics urges for consolidation albeit by following a calibrated approach.
Read more...
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age WomanIIPM's Management Consulting Arm-Planman Consulting
IIPM Prof. Arindam Chaudhuri on Internet Hooliganism
Arindam Chaudhuri: We need Hazare's leadership
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
Moreover, with the expiry of the highly enriched uranium deal between US and Russia in 2013, a big chunk of secondary supply of uranium will be out of the market and thus the junior exploration companies are bound to witness a lot of M&A activity.
The cloud over the uranium deals post the Fukushima disaster has been cleared. There is no question that the deals will be derailed. In fact, the inorganic route has in a way begun; Russia’s JSC Atomredmetzoloto (ARMZ) is on an acquisition drive at present and is all set to acquire uranium assets in southern Tanzania from Australia’s Mantra Resources for $944 million. ARMZ has also been given the green light by the United States to a 51% takeover of Uranium One in Canada. Extract Resources Ltd, is also expected to go ahead with a proposed $1.7 billion uranium venture in Namibia, while China’s Guandong Nuclear Power Group has already made a $756 million offer to Kalahari Minerals. Add to this the fact that uranium companies ranging from Australia-based Toro Energy Ltd to Toronto-based Mega Uranium Ltd are so depreciated (e.g. Mega Uranium’s share price has plunged 32% between March 11, 2011 and April 25, 2011) that they have now become prime takeover targets. As a matter of fact, M&A activities involving Canadian uranium exploration companies are likely to pick up in 2011 itself; a view very much shared by analysts at GMP Securities.
Statistics from London-based World Nuclear Association reveal that while there are 442 nuclear power plants, 54 of them are in Japan alone and about 60 reactors are currently under construction or refurbishment in 12 countries. Also, uranium – with a half life varying from 700 million years to 4.47 billion years (depending upon the isotopes) – is in deficit. To meet the energy requirements of the world, it is imperative that the world realises the inevitability of consolidation in the uranium industry. While the current disaster in Japan urges the need for better safeguards to be put in place, the current energy dynamics urges for consolidation albeit by following a calibrated approach.
Read more...
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age WomanIIPM's Management Consulting Arm-Planman Consulting
IIPM Prof. Arindam Chaudhuri on Internet Hooliganism
Arindam Chaudhuri: We need Hazare's leadership
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
