Second quarter 2010 global chemicals industry M&A analysis
Making smarter deals in a changing environment: Merger integration
In addition to a detailed summary of M&A activity in the second quarter of 2010, we continue our special report series on making smarter deals in a changing environment and look at merger integration and the ever-increasing importance of capturing synergies to maximize deal value. The discussion explores the importance of cost containment, identifies synergy targets, and suggests strategies for successful M&A integration.
In the second quarter 2010, M&A deal activity in the global chemicals industry was comparable to 2009 activity but significantly lower than the first quarter of the year, with $8 billion in disclosed Q2 deal activity compared to almost $18 billion last quarter. Overall deal volume in the first half of 2010 was up 45% for deals with a disclosed value of greater than $50 million compared with the same period last year.
Based on PwC's current view of the market and the transactions in progress, we are optimistic that the level of M&A activity will remain strong in 2010. Proactive companies in the chemicals sector that are willing to invest time up-front preparing for deals so that they can move quickly as opportunities become available will be able to effectively utilize M&A as a growth tool to reposition themselves.