Welcome to the third quarter 2010 edition of Chemical compounds, PwC’s quarterly analysis of mergers and acquisitions (M&A) in the global chemicals industry. In addition to a detailed summary of M&A activity in the third quarter of 2010, we include a special report which takes a closer look at a global economy characterized by instability and its impact on the strategic M&A deal environment. In an effort to strengthen their core businesses and expand their footprint, companies are reconsidering foreign investment strategies. And while emerging markets offer opportunities to grow, they also present commercial risks and challenges. Like a curate's egg, today's economic expectations are a mixed bag of good and bad.
Overall, third quarter 2010 M&A deal activity in the global chemicals industry has demonstrated a strong momentum with total large deal value reaching $66.6 billion for year-to-date and jumping 20% over full-year 2009. This spike in deal volume is a reflection of the general improvement in the economy, increased profitability within the chemicals sector, as well as an emerging trend of companies placing greater emphasis on growing core operations via complementary acquisitions and strategic integration.