M&A activity in the global chemical industry
New game, higher stakes
Deloitte Touche Tohmatsu Limited’s (DTTL) Global Manufacturing Industry group is pleased to announce a byline article in the Euromoney book entitled “The International Mergers & Acquisitions Review 2011.” The book is designed to look at the important issues in Mergers & Acquisitions (M&A) with the aim to provide a unique perspective of the latest trends and developments on advisory, financing, restructuring, and regulatory issues globally. The byline article developed by DTTL’s Global Manufacturing Industry group focuses on “M&A activity in the global chemical industry: New game, higher stakes.”
After two years of economic trough, coupled with deeper cost-cutting and efficiency strategies to bolster profitability, companies in the chemical industry are re-gearing their businesses to meet new challenges that stem from changes in the socio-economic realities of their markets and mounting global competition. As the economic recovery naturally creates a more favorable climate for M&A, chemical companies will also be motivated to restore growth to industry average rates or better by aggressively tuning their business portfolios; this could potentially result in outsized increases in the rates of acquisitions and divestitures compared to historical recoveries. The notion of consistently executing a comprehensive M&A strategy becomes pivotal to the success of those chemical companies seeking to reposition themselves for growth and profitability in the 21st century. The byline article summarizes recent M&A trends in global chemicals and highlights challenges facing the industry.
The attached article was originally published within the International Mergers & Acquisitions Review 2011. Please visit http://www.euromoney-yearbooks.com for more information.