Mergers in the mining sector often fall short of expectations, frequently failing to realize projected synergies due to integration challenges, commodity price fluctuations, and regulatory obstacles.
Mining M&A deals typically close at rates of 85–90%, yet value creation frequently lags expectations. Success stories, such as Evolution Mining’s regional hubs, demonstrate that repeatable strategies can work, whereas high-profile failures like BHP-Anglo underscore the risks of inflated valuations and execution missteps(Braun et al., 2026).
Common Pitfalls:
- Neglecting “aboveground” integration, including community engagement and procurement synergies.
- Paying premiums at commodity cycle peaks without ensuring long-term returns.
- Facing regulatory delays in multi-jurisdictional deals that undermine the original deal rationale.
Reference:
Braun, C., Birch, M., & Kaur, R. (2026, January 27). It’s Time for Mining Companies to Get More Serious About M&A. Bain. https://www.bain.com/insights/mining-m-and-a-report-2026/
