2016 Global chemical industry mergers and acquisitions outlook
A quest for focus
Global chemical industry
With global interdependence continuing to increase, the risk of a large global event is always a concern. But the world has demonstrated over the past few years that the global chemical industry can forge through many difficulties, while keeping focus on executing on business strategies.
Mega-deals are likely to continue in 2016, in addition to continued portfolio realignment to monetize off-strategy or lower performing businesses. Yet, they are often complex to execute and require more of management’s focus to realize and capture the synergies used to justify often high valuations. As such, digesting these large complex transactions may drag on new deal activity. As a result, companies may be more focused on efficiently integrating their 2015 deals, rather than looking for new acquisitions.