Chemicals industry deal activity remained upbeat during the first quarter of 2019 with the announcement of two potential megadeals, a $69 billion and a €5.8 billion acquisition. Investments in and valuations of the Specialty Chemicals category continued to be significant amid smaller supply while Commodity Chemical valuations continued to remain relatively flat given balanced demand and availability. Private equity-sponsored transactions remain steady, accounting for approximately 33% of deal volume.
“Given the stability of the broader economy during the first quarter of 2019, the record levels of cash available at both private equity and corporates, and the continued focus on portfolio coherence, the outlook for Chemicals M&A activity continues to be upbeat, offsetting any impact from unknown macroeconomic factors such as trade tariffs and Brexit.”
Chemicals Leader, PwC US
Chemicals Deals Leader, PwC US
Chemical Deals Strategy Leader, PwC US
Deals Managing Director
China Inbound Deals Leader, PwC US