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Financial Services Acquisitions

Stagnating demand, lower production, weaken Japanese earnings

Major Japanese chemical makers, including Mitsubishi Chemical, Toray Industries and Sumitomo Chemical, reported declines in quarterly income, citing stagnant demand and weakening market conditions caused by the COVID-19 pandemic. 

SK Capital fund to focus on middle-market invesmtents

The fund, called Catalyst, will focus on complex corporate carve-outs and family-owned or founder-owned businesses.

Chemicals investment bank Valence Group adds new capabilities with Piper Sandler

Chemicals investment bank The Valence Group (New York, New York) will add $40 million to its parent company's annual revenues, and broaden its scope with new products and services.

M&A quarterly briefing: COVID-19 cuts into deal activity

COVID-19 took a big bite out of chemicals M&A activity in the second quarter of 2020, with significant declines in both announced deal volumes and values, according to CW data. However, volumes rose through the quarter.

COVID-19 outbreak puts strain on balance sheets

The precipitous drop in demand and volatility in financial markets that has resulted from the coronavirus disease 2019 (COVID-19) outbreak is causing many leading chemical makers to shift capital allocation priorities.

COVID-19: Sasol considers emergency rights issue, accelerated asset sales to reduce debt

Sasol (Johannesburg) said on Thursday it is considering a rights issue of new shares and an accelerated divestment program in excess of the current $2-billion target to raise funds and allay growing investor concerns about its debt.

COVID-19: ACC forecasts decline in US industrial production

The American Chemistry Council (ACC) is forecasting a 2.2% sequential decline in US industrial production in the first quarter of 2020, according to estimates from chief economist Kevin Swift.

COVID-19 to hurt Lanxess's 2020 earnings, company swings to net loss in fourth quarter last year

Lanxess said today it expects its core profit to drop in 2020 as the global coronavirus disease 2019 (COVID-19) outbreak looks set to weaken the company's supply- and delivery chains. It expects 2020 EBITDA to be €900 million–1.0 billion ($1.02–1.13 billion), including an impact from the COVID-19 epidemic of €50-100 million for the year. 

COVID-19: Dow estimates $200-million EBITDA impact, "vast majority" of sites remain online

Dow, Inc. is forecasting the coronavirus disease 2019 (COVID-19) will reduce first-quarter EBITDA by around $200 million, approximately half of which is due to reduced sales in China. 

GDP growth forecast sinks on COVID-19 fears

The growing economic impact of coronavirus disease 2019 (COVID-19) has resulted in significant downgrades to IHS Markit’s GDP growth forecasts. 

Financial Services Acquisitions

COVID-19 clouds earnings outlook beyond the first quarter

The impact of coronavirus disease 2019 (COVID-19) appears increasingly likely to be felt by chemical companies into the second quarter, and possibly beyond, as the number of new cases mounts around the world.

M&A quarterly briefing: Volumes down slightly, but values up strongly

The trajectory of chemical M&A volumes and values diverged during the fourth-quarter of 2019. On a year-on-year (YOY) basis, M&A volumes were down by 7.1%, to 65 transactions, while values more than tripled, from $16.5 billion to $54.0 billion, according to CW data. 

Geopolitics, sluggish Chinese economy dent Japanese firms' performance

Major Japan-based chemical companies have released their consolidated results for the fiscal first nine months ended 31 December 2019. Firms such as Mitsubishi Chemical, Toray Industries, Sumitomo Chemical, Asahi Kasei, Mitsui Chemicals, Teijin, Tosoh, and Ube Industries report declines in income citing lower demand and weakening market conditions caused partly by US-China trade friction.

New era of big M&A deals in Japan's chemical sector?

Japan's chemical industry witnessed the announcement of two major M&A deals between domestic companies in 2019. Showa Denko announced plans in December to acquire Hitachi Chemical from Hitachi Ltd. and other shareholders through a tender offer.

Chemicals stocks rebounded in fourth quarter

Chemical industry stocks rallied in the fourth quarter of 2019, as signs emerged that the weak industrial economy may be strengthening. The CW75 index increased by 7.9% during the three months ended 7 January 2020, the most recently available data.

Slower economy weakens South Korean earnings

Major South Korean chemical companies' third-quarter results reflect a slowing in the country's economy. 

Billion-dollar-club data dive: Margins slip in 2018 because of decline in APAC

While DowDuPont, Sinopec, and BASF topped CW’s billion-dollar-club ranking for 2018, looking at the industry’s leaders by other metrics can reveal other leaders—and laggards. Here we will take a look at profitability, investment, and some other important metrics for the industry.

US companies adjust to weaker earnings outlook

An increasingly difficult economic outlook hung over second-quarter earnings announcements in the US, with most firms expecting a sluggish second half.

M&A; quarterly briefing: Volumes and values rise in second quarter

Chemicals M&A volumes and values rose on a year-over-year (YOY) basis in the second quarter of 2019, continuing a bull run for M&A even amid growing signs of economic weakness. Deal volumes were up by 8.3% YOY to 65, while deal values increased 23.3% to about $24.3 billion.

US-China trade tension, low demand, sluggish Chinese economy squeeze Japanese firms

Major Japan-based chemical companies have released their consolidated results for the fiscal first quarter, ended 30 June. 

GDP growth forecast remains stable

IHS Markit’s global GDP growth forecast was broadly stable this month, at 2.8% for 2019. The forecast was revised slightly upward for the US and Japan, and slightly downward for the eurozone, UK, Brazil, and Russia.

Hexion looks beyond debt burden

Hexion, the long-troubled maker of formaldehyde, phenolic resins, and epoxies, has finally turned a corner after three-month stint in Chapter 11 bankruptcy protection. The Chapter 11 filing reduced Hexion’s debt burden by over $2.0 billion, and upon exit the company secured $2.0 billion in exit financing and $300 million in equity capital.

Dow, DuPont target efficiency in capital allocation

The new Dow and DuPont discussed their plans for capital structure and allocation at investor events last month. DuPont, which is moving $2 billion in revenue to non-core assets, is aiming to generate $160 million in synergies over the next year chiefly from an operational improvement program in man….

M&A quarterly briefing: Big drop in activity as 2018 wound down

Fourth-quarter M&A deal activity declined substantially from the year-ago quarter as 2018 drew to a close, according to CW's M&A data.

Equity market correction takes hold in chemicals

A broad decline in equity markets in recent months, especially in the second half of 2018, has resulted in tumbling prices for chemical stocks.

Asian M&A in flux

Chemicals M&A in Asia is in a state of flux as China — the region's most important market – responds to the Trump administration's confrontational trade policies, as Japanese buyers look abroad and the industry in multiple countries looks to move downstream.

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GDP growth forecast revised upward, again

IHS Markit now expects global GDP to contract by 4.9% this year, on the back of improved outlooks in multiple countries.

Financial Services Acquisitions

WPC 2020 Online: Global ESG Investor Overview

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