Chemical Industry M&A Activity Seems to Stabilize
According to Pricewaterhouse Coopers’ fourth quarter 2008 analysis of mergers and acquisitions in the global chemicals industry, planned M&A activity declined significantly over the past year, but it may have begun to stabilize.
Deal volume by total announced deals in 2008 was up slightly over that of 2007 putting the year-to-date volume at 869 announced deals, compared with 853 announced deals in 2007. Although total deal volume is up, those with disclosed value and those with disclosed value greater than $50 million are down in 2008 versus 2007. Chemicals industry mergers and acquisitions typically include many small to midsized deals which allows the deal volume to remain relatively high, even during periods of economic uncertainty. Despite a high volume of deals in the fourth quarter, only 13 deals had a disclosed value which amounted to $6 billion.