5/7/10 – Merger and Acquisitions up 45% in the Global Chemical Sector.
5 August 2010
According to PricewaterhouseCoopers, merger and acquisitions activity in the chemicals industry was up by 45% in quarter one of 2010 compared to quarter one of 2009. The total value of deals from quarter one of 2010 reached over $8 billion.
For quarter two of 2010, an increase in cross-continent deals accounted for 66% of all deals. There were 23 announced deals in quarter two of the PricewaterhouseCoopers analysis of the chemicals sector, each of a value of at least $50 million although total value of all deals was lower than in quarter one 0f 2010.
The total merger and acquisitions deal values of 2010 have already exceeded the value of deals in 2009, despite the fact we are only halfway through the year.
"Activity in the chemicals sector continues to show that companies are extending the time they take to finalize deals, tied with an increasingly strong focus on the importance of planning, diligence and negotiations," said Tracey Stover, global chemicals leader for PricewaterhouseCoopers. "We see an increase in the size of deals in the pipeline, many of which have not yet been announced, so assuming those deals close as expected, we anticipate both the average deal size and total number of deals to increase in the second half of 2010."