Deloitte predicts rise in global chemical industry M&A activity in 2014
SINGAPORE, 6 March 2014—Mergers and acquisitions (M&A) activity in 2014 for the global chemical industry will likely increase due to downstream value-added opportunities, continued strength in specialty chemicals, and portfolio realignments in North America. This is according to the Deloitte Touche Tohmatsu Limited (DTTL) 2014 Global chemical industry mergers and acquisitions outlook, which also projects M&A growth in 2014 as companies focus on key ends markets including agrochemicals, bio-based/green chemicals, and health and nutrition.
“This year developing megatrends like expanding global middle class, population growth, and food security will influence global chemical M&A opportunities in end markets such as agrochemicals, as well as impact M&A activity in various regions,” said Dan Schweller, DTTL Global Manufacturing M&A Leader. “Also, North America M&A activity will likely increase as chemical companies continue to pursue large structural portfolio realignments.”
Highlights of global M&A activity include:
While the report zooms in particularly on China, Southeast Asia will also play a significant contributing role in M&A activity in the larger Asia Pacific region. “For the Southeast Asia region, we have witnessed a large number of European and US chemicals companies moving their regional hubs to Singapore, driven by favorable government incentives and taking advantage of the mature business infrastructure. In the context of M&A activity, this means that many of the key stakeholders will be located in Southeast Asia and will strengthen the M&A ecosystem in Asia Pacific.” says Hugo Walkinshaw, Deloitte Southeast Asia Manufacturing Leader.
“The global chemicals industry is primed for increased M&A activity in 2014,” says Duane Dickson, DTTL Global Chemicals Sector Leader. “Key industry trends focused on advanced solutions, resource conservation, and environmental responsibilities are driving acquisition growth plans and divestiture activity. Expect consolidation trends to continue as companies and the industry pursue transformations to more sustainable businesses and operations.”
View the report at: www.deloitte.com/chemicals