Global chemicals M&A deals insights - Q3 2017
The global chemicals industry continues to perform well under positive macroeconomic factors and steady demand. In terms of value, the investments are modest in terms of value compared to a year ago, displaying a continues shift towards middle market transactions.
The third quarter of 2017 brought in 20 transactions this year for a total value of 10.5 billion dollar, yet investments follows to concentrate in the specialty chemicals category.
While low interest rates and cash flows set a backdrop for increased M&A activity, other factors may also influence investments: oil prices, are on the rise, natural gas prices are expected to increase in 2018 and corporate tax reform remains on the table. We expect companies to continue to invest M&A as it continues to be an attractive option for improving profitability.
''With the completion of the Dow DuPont megadeal, focus will now shift to the preplanned carve-outs and the industry realignment that will be triggered thereafter. The completion of this and other megadeals will mark the end of the first phase of a years-long transformation of the chemical industry landscape.''
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