Recovering from the hurdles of 2020, the chemicals industry experienced a record number of M&A transactions in 2021. Sustaining this momentum, 2022 will likely prove to be another busy year of transactions in the chemical industry.
Global M&A volumes in the industry hit a 10 year low in 2020, the industry turned around and marked a 10 year high in 2021 in terms of both M&A volumes and number of transactions exceeding US$1 billion in value. This rebound was largely anticipated by our 2021 Global chemical industry M&A outlook, as nearly 75% said that their companies were very likely to undertake M&A in 2021.
After 2021’s record high in terms of M&A volumes, will the strong M&A momentum continue in 2022 or will the pace of M&A in the chemicals industry slow? Will chemical executives largely fill their M&A appetite in 2021 or are they still hungry for more in 2022? How will the industry’s continued move to sustainability shape its approach to M&A? After a record 84 transactions in 2021, will private equity’s deployment of capital in the chemicals industry continue or will it moderate? Will any new sectors or geographies emerge as key M&A markets in 2022?
Deloitte surveyed 33 chemicals executives across sectors and geographies to assess current and future M&A plans. For the second consecutive year, chemical executives were nearly unanimous in their positive outlook for M&A heading into 2022.