Dubai PR Network, Online Press Release from Dubai and Middle East
 
(Energy and Industry)
Filter PR by
  
Mega deals reshape the chemicals industry
 

A surge of mega deals is approaching and will accelerate the “merger endgame” in multiple chemicals markets.

United Arab Emirates, Dubai, 21 March, 2017:   Record-high M&A activity is set to transform the chemicals industry in 2017, according to A.T. Kearney’s new Chemicals Executive M&A Report. More than $300 billion of chemicals M&A deals are in the pipeline of which four pending mega deals represent 75 percent. Each of these large deals (Dow-Dupont, Bayer-Monsanto, ChemChina-Syngenta, Praxair-Linde) is valued between $40-70 billion, two to three times larger than any single deal seen in the past 10 years.

“The planned mega deals highlight a broader trend of diversified chemicals companies shifting their portfolios toward more pure play models. This shift is incentivized by the higher multiples investors award to this type of chemicals companies and a quest to reap the benefits of increased market reach, capabilities, and efficiency,” said Dr. Joachim von Hoyningen-Huene, partner at A.T. Kearney and co-author of the report. 

Globally, C hina and the United States represented 44 percent of all chemicals M&A deals in 2016. The activity of Chinese acquirers has steadily increased and made China the number one country of origin for transactions, representing 24 percent of all deals. Chinese Chemicals M&A is driven mainly by domestic consolidation (20 percent of all global deals) and acquisitions of Western technology leaders.

“The Middle East represents only 2.2 percent of global chemicals M&A value in 2016, but the years ahead offer strong opportunities for regional companies. Access to attractive feedstock combined with a regional move to downstream chemicals is set to increase demand for the right assets. As global chemicals companies continue to refocus their portfolios, non-core assets are likely to become available. We expect that regional companies will be able to benefit from these divestitures and pick up good deals which will fit their portfolio strategy,” commented Thomas Rings, lead partner of the A.T. Kearney energy practice in the Middle East and co-author of the report.

More than 80 percent of chemicals executives surveyed for the A.T. Kearney report identify access to advanced technologies or application know-how as the main drivers for continued strong international M&A. In contrast, 37 percent say economic volatility is the largest potential impediment to future M&A growth.

“With continued uncertainty and volatility of oil prices chemicals companies are facing difficult questions about what their business environment will look like in the next 12 to 24 months. Despite these uncertainties, we see companies in this region well positioned to benefit from the arising global M&A opportunities. Deals which provide access to new chemicals value chains, global markets and technologies will be the most attractive to regional companies,” concluded Thomas Rings. 

Posted by : Dubai PR Network Editorial Team
Viewed 9217 times
PR Category : Energy and Industry
Posted on : Tuesday, March 21, 2017  5:48:00 PM UAE local time (GMT+4)
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of DubaiPRNetwork.com.
Previous Story : Arabian Gulf Chemicals Industry Grows at 3.7% in 2016 to 150...
Next Story : Eliminating Energy-Related Carbon Emissions Possible, New IR...
Email this article Print this article

Share this article with your friends and followers
NewsVine
Back to Section Home

Related Stories



 
 
Most Viewed Press Release posted in the last 7 days
SOUQ.com to Launch Half a Million Deals for White Friday 2017 [20167-Views]
Give the Gift of Beautiful Hair with SHOW Beauty [16671-Views]
PLAY FOR PEACE, Spread Good Vibes this Christmas [16622-Views]
Roja Parfums ELYSIUM - Now available at Paris Gallery in UAE [16244-Views]
Runway Dubai Wrapped up an inspiring star studded event with iconic designer, Walid Atalla... [14695-Views]
FOREO: Futuristic Gifting Ideas [13420-Views]
Six pairs of Emirati siblings marched together at Skyline's 27th Graduation Ceremony [13396-Views]
Infinix Launches Zero 5 in Dubai in Partnership with Souq.com [10943-Views]
Santa Claus is coming to town on a festive Graham Chronofighter Vintage Nose Art Ltd [10303-Views]
Stylish automatics from CITIZEN made for the special occasion [9955-Views]
Alpha Assured Assistance (AAA) Loyalty Program to ramp up loyalty landscape in the UAE [8186-Views]
Tub Of Butter Celebrates First Birthday with 1 Dhs Coffee [8156-Views]
SOUQ ramps up operations ahead of White Friday Sale [8150-Views]
SAINT HONORE Celebrates the UAE's 46th National Day with a Limited Edition Haussman Quartz [7845-Views]
Experience the best of Korean beauty with Missha [7710-Views]
Make Room for Play and Celebration With IKEA During Dubai Design Week [7454-Views]
Dubai RAK Diabetes Center launches Dhs 1 Diabetes screening for residents [6862-Views]
50 Years of Puma Suede: PUMA Brings It for the Culture With the B-boy Pack [6399-Views]
Dubai Shines as Global Industry Descends on Vod Dubai International Jewellery Show [5813-Views]
Godiva Arabia opens its 17th branch in the UAE [5606-Views]
Premium Beverages Maker Hielo Beverages India Forays into Dubai(UAE) [5594-Views]
H.H. Sheikh Hamdan bin Zayed Al Nahyan Tours the Barakah Nuclear Energy Plant [5228-Views]
Chattels & More returns to Downtown Design showcasing limited edition pieces while KARE ma... [5191-Views]
Dubai Sports Council Championship for Football Academies set for a “bigger and better” sea... [5142-Views]
Toyota goes Xtreme with Land Cruiser, FJ Cruiser and Fortuner [5142-Views]
 
RSS Facebook Twitter LinkedDin
 
Top Sections
 
Top Stories