M&A activity in resources sector losing momentum

The government's ongoing anti-corruption drive is having a diverse effect on outbound mergers and acquisitions activity, despite a growing number of opportunities brought about by dropping crude oil and commodities prices, according to a leading expert.

Jeremy South, global leader of mining M&As with Deloitte Touche Tohmatsu Ltd, said that China used to be a "very active buyer in the global energy M&A market", but since the government started to take serious action to fight corruption, "doing nothing has become the preferred strategy for some State-owned enterprises" in the sector.

South said the country's energy M&A market has slowed considerably over the past two years, as the national graft clampdown has picked up pace.