Chemical compounds: Global chemicals industry mergers and acquisitions analysis - 2Q 2009

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Welcome to Chemical compounds: Second-quarter 2009 mergers and acquisitions analysis, PricewaterhouseCoopers' report devoted to the chemicals industry.

We continue to analyse M&A activity in the chemicals industry and have been publishing new Chemical compounds reports each quarter since 2008. These quarterly analyses include information on individual mergers and acquisitions for disclosed or undisclosed values, leveraged buyouts, privatisations, minority stake purchases, acquisitions of remaining interest and other important information.

In addition to a detailed summary of M&A activity in the second quarter of 2009, we supplement this issue with a special report that highlights potential growth opportunities and consideration of chemical companies doing business in China.  Included is a discussion around China's role and stature in the international economic order, its spending priorities, and partner expectations of foreign investment.

The second quarter 2009 mergers and acquisitions analysis reports that while deal volume was down only seven percent for the first half of 2009, compared to the first half of 2008, the volume of deals with a disclosed value greater than $50 million was down 43 percent. However, when compared to the prior quarter, deal volume did pick up in Q2, rising 15 percent to 187 deals. Despite the increase in the number of announced deals, the average deal size decreased to $72 million in the second quarter from $163 million in the first quarter, illustrating that while small deals continue, credit markets remain relatively tight, inhibiting the number of large deals.