2013 Global Chemical Industry Mergers and Acquisitions Outlook
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. M&A in the chemical industry is likely to continue to be a key tactic to address the business needs of globalization, as well as a means to demonstrate strong revenue growth and improving cost efficiencies.
China’s chemicals sector is in a maturing state after growing demand and spurred substantial investments in chemical production capacity, but at a slower pace with emerging structural imbalances evidenced by overcapacity in some subsectors.
Stimulated by shale gas, North American petrochemical investment is a potential risk to global overcapacity, and inefficient facilities are likely to be even more exposed in the upcoming years. Further downstream, specialty chemical producers will continue to actively manage their business portfolios with a focus on identifying market opportunities driven by global macro trends such as energy, water, and food scarcity. Overall, successful M&A player in the chemicals sector will continue to drive value through tactical use of M&A to accomplish corporate goals and strategies.