The chemical multiverse
The Deloitte Touche Tohmatsu Limited’s (DTTL) Global Manufacturing Industry group has developed End market alchemy: Expanding perspectives to drive growth in the global chemical industry to provide insights to help the global chemical industry explore.
The decade ahead
By 2020, the global chemical industry could face a range of competitive dynamics that differ from today in nature and intensity. As the economy emerges from the Great Recession of 2007–2009, the chemical industry finds itself passing through a period of profound transformation.
2013 Global Chemical industry mergers and acquistions
The global chemical industry continues to face a number of trends that will challenge the sector and drive new opportunities for organic and inorganic growth. New markets, shale gas discoveries, and Advanced Materials Systems are among the trends driving organic growth and stimulating activity in mergers and acquisitions (M&A) and alliances. The industry is witnessing portfolio realignment as companies take steps to strengthen balance sheets, pursue consolidation strategies, and establish footholds in new markets. Although recent M&A activity levels have been lower than the levels seen in 2007 and 2008, significant M&A activity is still underway and an important element of today’s chemical industry.
To address the trends in M&A activity within the global chemical industry, Deloitte Touche Tohmatsu Limited’s (DTTL) Global Manufacturing Industry group convened a panel of leaders from Deloitte member firms in North America, Europe, and China to consider the developments in the sector across these markets and their likely impact on M&A activity into 2013. This chemical industry M&A outlook is the first in a series that focuses on three of the geographic regions which is believed to be top-of-mind to global chemical M&A participants. Subsequent outlooks will highlight other trends and geographic regions.
Though the Eurozone crisis and slow recovery in other mature markets appear destined to hamper growth, continued portfolio realignment will likely continue as chemical manufacturers, revitalized from a combination of stronger earnings in 2010 and 2011, strong balance sheets, and prior cost savings measures, search for advantages in addressing the ever-changing needs of important end markets.
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