Finance & acquisitions

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M&A quarterly briefing: Sabic takeover leads to surge in deal values

The first-quarter of 2019 saw divergent patterns in transaction volumes and values for chemicals M&A, as Saudi Aramco’s takeover of Sabic caused quarterly announced deal values to roughly quadruple on a year-on-year (YOY) basis, to about $93.6 billion. 

Renewed trade tension feeds concern over economic outlook

The reemergence of trade tensions between the US and China, with both sides announcing new tariffs in recent weeks, has ignited new concern about the economic outlook after a stabilization of sentiment in early 2019.

Private equity activity jumped in 2018

The number of chemicals M&A transactions involving private equity firms increased significantly in 2018, as firms developed more sophisticated investment strategies and more buyers looked at chemicals deals. 

DuPont to focus on portfolio management

Post-spin DuPont will be an "active manager" of its portfolio, DowDuPont CEO Ed Breen told attendees at a meeting of the Chemical Marketing and Economics Group (CM&E) in New York last week.

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.

M&A quarterly briefing: Volumes and values diverge

Announced chemical M&A volumes and values diverged on a year-on-year (YOY) basis during the third-quarter of 2018, with deal volumes down 5.9% and deal values nearly doubling.

New regulatory hurdles create complications for M&A deals

Emerging regulatory hurdles, around both national security and antitrust issues, are throwing up roadblocks to M&A transactions and complicating due diligence, observers say.



Featured data

M&A multiple trends for first-quarter 2019

The average EBITDA multiple reported in CW's M&A database ticked up slightly in the first-quarter of 2019, but the figure remained below the levels seen during 2017 and the first half of 2018.

Podcast

China Outbound M&A

IHS Markit VP Roger Green chats with CW about China's outbound acquisition efforts, a key part of the country's downstream push. Live from the 2019 World Petrochemical Conference in Houston.

WPC 2019

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Tariffs threaten chemical trade

One critical risk in the coming year is the sharp drop-off in world trade growth, which fell from a pace of above 5% at the beginning of 2018 to nearly zero at the end of the year, according to IHS Markit estimates.


Aramco's aggressive push into chemicals

Global energy companies are accelerating chemical investments as forecasters call for a decline in growth in demand for refinery fuels.