PwC's latest report on global chemical industry quarterly M&A transaction activity shows that in the third quarter, there were 22 large-scale M&A deals with global industrial transactions exceeding US$50 million, totaling US$16 billion. Affected by the large-scale M&A transaction, the average value of each transaction in the global industrial M&A transaction in the third quarter increased by more than 50% from the second quarter. Chemical companies currently have sufficient cash reserves for strategic investments. US chemical companies lead the North American M&A transaction market to become stronger. Chinese companies are increasingly rational in seeking M&A targets.
Tracy Stoff, head of global chemical business at PricewaterhouseCoopers, said: "In the third quarter, chemical companies are still seeking opportunities for organic growth and new markets through mergers and acquisitions. It is expected that chemical M&A transactions will continue to rebound steadily. Benefit from the cost reduction and efficiency enhancements and business integration measures that were vigorously implemented during the financial crisis, the company's cash flow has increased, and it has the ability to conduct larger and more mergers and acquisitions transactions, but the current global financial and economic uncertainties have hindered the mergers and acquisitions transaction. market."
In the third quarter of the globalized industry, there were four M&A transactions with transaction prices exceeding US$1 billion, with a total value of US$11.7 billion, which accounted for 73% of the total global chemical M&A transactions in the third quarter and an increase of nearly 12% from the second quarter. In the third quarter, there were two medium-sized mergers and acquisitions (more than 500 million U.S. dollars but less than 1 billion U.S. dollars each) worth about 2 billion U.S. dollars. The number of smaller-scale M&A deals (valued at more than US$50 million, but less than US$500 million) fell from US$4.2 billion in the second quarter to US$2.4 billion in the third quarter. Excluding the giant US$40 billion U.S. giant deal in the third quarter of last year, the total volume of global industrial M&A transactions in the third quarter of this year increased by a significant 60% from the same period of last year, and the number of transactions compared with the third quarter of last year was 24%. It is basically flat.
The report shows that strategic investors still occupy the majority, all 4 large-scale M&A transactions are completed by strategic investors, and the financial buyer’s M&A transaction accounts for only 1.2% of the transaction volume. This is from PricewaterhouseCoopers. In 2006, the company began tracking the lowest level of financial buyers in global chemical M&A transactions. Stoff said: "The current global industrial M&A market has shifted to non-financial buyers mainly because they have sufficient cash reserves. We suspect that the current high M&A prices may lead private equity investors to seek to sell to strategic investors. Previously acquired chemical business."
Due to the increase in the activity of the US chemical industry M&A transaction, the volume of bulk M&A transactions in the North American chemical industry accounted for 27% of the global total in the third quarter. Anthony J. Scamuffa, head of U.S. chemical business at PricewaterhouseCoopers, said: "To the acquirer, the global chemical M&A market in the third quarter is dominated by both North America and North America, regardless of the number of transactions or transaction value. "The volume of transactions involving South American acquisitions in the third quarter was nearly 4% higher than in the second quarter, accounting for about 18% of the total global transaction volume. Among them, the activity of Brazilian M&A deals increased significantly. Transactions in Asia and Oceania account for 23% of the global transaction volume, which is the same as in the UK and the Eurozone.
Stoff stressed: "The third quarter, Chinese companies participated in chemical mergers and acquisitions mainly in the local, because Chinese companies continue to focus on mergers and acquisitions in order to expand market share. Looking ahead, China will continue to lead the Asian and Oceanian chemical mergers and acquisitions Active, but the growth rate will slow down because current Chinese companies are beginning to seek acquisitions that are in line with the company's growth strategy, rather than simply buying for acquisitions."
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