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Chemical compounds: First quarter 2013 chemical industry mergers and acquisitions analysis
April 2013
At a glance
The Chemicals industry began the year with a decline in merger and acquisition (M&A) value to its lowest level since the global recession in mid-2009, due to fewer large deals (transactions worth more than $1 billion). Transactions in the US led deal activity, comprising nearly 45 percent of total deal value as chemical companies focused on domestic growth.
Welcome to Chemical Compounds, PwC's quarterly analysis of merger and acquisition (M&A) activity in the global chemicals sector that provides an overview of the most recent M&A results and our expectations for future deal activity.
Highlights of what this quarter's analysis revealed:
Deal value decreased from $13.4 billion to $5.3 billion, primarily due to a drop-off in mega deals
U.S. transactions led deal activity, driving nearly 45 percent of total deal value
Strategic investors remained active in deal making, representing almost 91 percent of transactions valued at $50 million or more
China continued to lead activity in the BRIC countries, as it accounted for two-thirds of deal volume in BRIC M&A activity, with six transactions worth more than $50 million
Developing nations like China and India show prospects for growth in M&A activity, indicating a shift from acquisitions led by advanced economies
Strategic investors remained active in deal making, accounting for nearly 91 percent of transactions valued at $50 million or more