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 8125 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
LG's Connected Technology Puts the World at Your Fingertips During Your Holiday Vacation [67350-Views]
LG's Connected Technology Puts the World at Your Fingertips During Your Holiday Vacation. [40522-Views]
Chloé eyewear - Vintage inspiration, luxurious details & a seventies feel. [14353-Views]
Salvatore Ferragamo Eyewear New Collection [14012-Views]
True Blue: Kiehl's Beloved Blue Herbal Formula Continues 50 Year Crusade Against Acne [9864-Views]
LG OLED TV Wins Fourth Consecutive CE Week TV Shootout Title [9278-Views]
UAE among the top spenders globally on beauty products forking out $239 per capita in 2016 [8778-Views]
Bubble lines in mother-of-pearl and superluminova add sparkle to summer [8107-Views]
Winners of Joyalukkas 60 KG gold, 60 days of winnings announced in last few days of promot... [7930-Views]
BAUME & MERCIER: A leather with a promising future for Petite Promesse [7826-Views]
Chef Tarek Turns on a Cooking Masterclass in Dubai Using Fresh Australian Produce [7491-Views]
Marks & Spencer Launches Back To School Collection - Rule Back to School [6740-Views]
alice + olivia Fall Winter 2017 [6161-Views]
ICONIC launches the PRECIOUS perfume line [6063-Views]
Zadig & Voltaire Fall Winter 2017: Men and Women [6015-Views]
TKD Lingerie: Tips for a pain-free swimwear season in style from [5844-Views]
LG HOM-BOT® Intelligence Rated Highest by Robotics Lab [5600-Views]
Alstom presents to RTA a full size train Mock-up for the Route 2020 project in Paris [5520-Views]
B4U Plus Ranked Top Asian Channel in The Middle East [5514-Views]
Jurassic Watch - A 150-Million Year Heritage on Your Wrist [5441-Views]
Beat the heat this summer with the must-have coolers and smoothies by 800 DEGREES PIZZERIA [5423-Views]
Al Maya Group participates in Africa Big 7 Show [4886-Views]
The Valuable Collection of the Late Sheikh Zayed bin Sultan Al Nahyan at Etihad Museum [4685-Views]
Abu Dhabi Summer Season Stakeholders Set for Emirate-Wide Programme of Entertainment [4648-Views]
Cerruti 1881 unveils the latest Riomaggiore timepiece [4581-Views]
 
RSS Facebook Twitter LinkedDin
 
Top Sections
 
Top Stories