Strategy & finance

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. 

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….

Higher raw material costs, China slowdown, trade tensions hurt Japanese firms

Major Japan-based chemical companies have released their consolidated results for the fiscal first nine months, ended 31 December.

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.

High valuations do not stop flavors and fragrances deals

Persistently high valuation multiples have done little to stymie M&A in the growing flavors and fragrances (F&F) market. One of 2018's biggest chemical deals—IFF's $7.1-billion acquisition of Frutarom—catapulted IFF into a near-tie with Givaudan for the largest F&F company by sales.

Plastics economy & dynamics