BlackRock would support consolidation among large miners as it would open the sector to generalist investors at a scale that facilitates large, complex projects needed for new supply, a portfolio manager said.
Olivia Markham, BlackRock's mining analyst, spoke at the Australian Financial Review conference in Perth.
"U.S. generalist investors want large, liquid equities. Bigger companies have better access to capital, trade at better multiples, and have the teams to build complex projects," she said.
BlackRock holds stakes in both Glencore and Rio Tinto, which previously explored a merger.
