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<\/p>\n","protected":false},"excerpt":{"rendered":"The peak in chemicals M&A may be coming to an end, according to A.T. Kearney\u2019s new Chemicals Executive M&A Report. Despite more than 60 percent of global chemicals sector executives anticipating stronger M&A activity in 2018 than in 2017, a growing number expect a drop in activity as a result of the limited availability and high prices of targets.<\/p>\n
The report provides a detailed review of the deal activity in 2017 and the outlook for chemicals M&A, based on a survey of executives in the industry. The continuous chemicals deal activity in the past few years has consolidated the industry, segment by segment. The most concentrated segment is industrial gas, where more than 85 percent of the market sits with five companies. Recent consolidation activity focused on the agrochemicals sector\u2014the Bayer-Monsanto deal represents a prominent example.<\/p>\n
New entrants to the market, combined with a lack of innovation and organic growth, have increased competition and will continue to fuel demand for targets in specialties and fine chemicals. While the share of specialties transactions rose marginally in 2017 from 41 percent to 43 percent volume-wise, there was an increase from 22 percent to 45 percent in value terms. For those late in the game, high multiples will be paid for remaining M&A opportunities.<\/p>\n
Commenting on chemicals M&A activity in the Middle East,\u00a0Thomas Rings, partner at A.T. Kearney, says that despite a low activity over the past years, chemicals M&A in the Middle East is expected to increase, driven by the regional downstream investment strategies and as well as push for localization. Chemical players and NOCs in the region can accelerate their expansion by focused acquisitions which will provide them with access to new markets, technology and capabilities in managing chemical downstream businesses. Most deals are likely to be mid-sized.<\/p>\n
Commenting on the chemicals M&A activity, Otto Schulz, lead partner of A.T.\u00a0Kearney\u2019s Global Chemicals Practice, said: \u201cThe simple endgame is over, and the next wave of chemicals M&A will be more complex. This will require companies and their executives to also consider smaller strategic targets to drive growth, versus large transformational deals to capture cost synergies.\u201d<\/p>\n
\u201cInternational chemicals M&A activity puts pressure on Middle East chemicals players and NOCs to step up M&A activities to secure the right international assets to support downstream strategies and secure future competitiveness. This next development step will enable regional players to move beyond the joint venture based business models. To be successful on the M&A front, regional players have to develop the right \u201cM&A muscle\u201d along the entire M&A process. This includes an overall M&A strategy, deal strategies, due diligence, transaction management and especially value creation through pre- and post-merger integration,\u201d added Rings.<\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
The peak in chemicals M&A may be coming to an end, according to A.T. Kearney\u2019s new Chemicals Executive M&A Report. Despite more than 60 percent of global chemicals sector executives anticipating stronger M&A activity in 2018 than in 2017, a growing number expect a drop in activity as a result of the limited availability and […]<\/p>\n","protected":false},"author":1,"featured_media":7571,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-7570","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.middleeastevents.com\/blog\/wp-json\/wp\/v2\/posts\/7570","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.middleeastevents.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.middleeastevents.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.middleeastevents.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.middleeastevents.com\/blog\/wp-json\/wp\/v2\/comments?post=7570"}],"version-history":[{"count":1,"href":"https:\/\/www.middleeastevents.com\/blog\/wp-json\/wp\/v2\/posts\/7570\/revisions"}],"predecessor-version":[{"id":7572,"href":"https:\/\/www.middleeastevents.com\/blog\/wp-json\/wp\/v2\/posts\/7570\/revisions\/7572"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.middleeastevents.com\/blog\/wp-json\/wp\/v2\/media\/7571"}],"wp:attachment":[{"href":"https:\/\/www.middleeastevents.com\/blog\/wp-json\/wp\/v2\/media?parent=7570"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.middleeastevents.com\/blog\/wp-json\/wp\/v2\/categories?post=7570"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.middleeastevents.com\/blog\/wp-json\/wp\/v2\/tags?post=7570"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}