Consulting firm Kearney pointed out in its latest report that in 2015, the value of mergers and acquisitions in the global chemical industry increased significantly by more than 30%, reaching US$110 billion, achieving growth for the fourth consecutive year. M&A transactions in the chemical industry are expected to surge in 2016 and achieve another historic breakthrough. The report pointed out that this wave of mergers and acquisitions occurred at a time when chemical enterprise groups were transforming. Various chemical enterprises began to question the value of traditional diversification models and began to seek clearer business models. With two mega-deals already announced and the potential for new mega-M&A deals in emerging markets, total chemical industry M&A in 2016 is expected to double last year’s level. China has transformed from a small market in the field of chemical industry M&A 15 years ago to the world’s second largest M&A transaction market, with its share of M&A transactions accounting for 21% of the total global transactions, second only to the United States’ 22%. Other Asian countries have also carried out large-scale M&A activities, with Japan and South Korea accounting for 12% and 6% of global M&A transactions respectively. In 2015, mega-M&A activities in the Chinese market drove the value of M&A transactions in Asia and Oceania to increase by 37% year-on-year.
Linus Hildebrandt, director of the energy process industry at Kearney Greater China, said that as more and more companies strive to obtain world-class expertise and obtain growth opportunities outside the local market where growth is slowing down, in the China will play an increasingly important role in global M&A activities in 2016. Undervalued companies in mature markets such as Europe will become important acquisition targets for these acquirers.
Surfacant Manufacturer
PU Auxiliary Pioneer
