Insights

2014 Global chemical industry M&A outlook

Predictions for the chemical sector

For 2014, we expected increased M&A (mergers and acquisitions) activity in the global chemical industry. Our report studies the world market and its outlook in detail.

In essence – the chemical industry

In our report, Global chemical industry mergers and acquisitions outlook, we predicted a rise in global chemical activity in 2014. Driving this rise would be:

  • Downstream value-added opportunities
  • Continued strength in specialty chemicals
  • Portfolio realignments in North America

 

As our infographic shows, we also projected M&A growth in 2014 as companies focus on markets such as:

  • Agrochemicals
  • Bio-based/green chemicals
  • Health and nutrition

2014 chemical industry by region

We also studied the sector by region and drew up these forecasts:

US
Chemical companies in the US will focus M&A efforts on high growth investments that offer product differentiation in the global market. We anticipated a continuation of large deals in the first half of 2014.

Europe
Chemical M&A activity is unchanged. Increased competition from Asia and low production costs in the US will continue to affect European companies. Private equity will also play a role in M&As in 2014, as will small divestitures and bolt-on acquisitions.

Asia
China is driving Asia Pacific’s transaction activity. In 2014, M&As will be prominent. We expect global chemical companies to capitalise on new market opportunities in China for high-value applications, product lines, and technologies.

Latin America
It’s likely that Latin America will see further consolidation in the specialty chemical segment in 2014. We expect companies to focus on synergies, operational efficiency, and increased competitiveness.

Middle East
We foresaw a mixed outlook for the chemical industry in the Middle East, but projected moderate growth in overall M&A activity.

Download 2014 Global chemical industry mergers and acquisitions outlook.

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