A recent survey of chemical executives by company A.T. Kearney reveals that up to 55% of experts expect an increase in chemical mergers and acquisitions (M&A) activity for 2013.
According to an A.T. Kearney press release, those surveyed they believe this will be fuelled by favourable financing conditions, continuous consolidation in Asia, regional expansion, and access to low-cost feedstock in the US, Canada and Mexico.
The report reflects industry activity leading up to 2012 and provides an outlook for 2013, based on a survey among executives of leading chemical companies and investment banks.
In 2012 momentum in the chemical M&A market slowed significantly as investors were cautious to invest in an environment marked by economic volatility and by high valuation expectations on the sell side.
M&A and industrial gases – 2013
In the industrial gases business, a sub-sector of the chemicals industry, gasworld understands that drivers such as distribution, cost-synergies, and equipment are among several factors that will decide what regions become M&A hotspots in 2013 and the years to come.
As China and India, along with other regions in Asia, utilise their industrial growth potential, large industrial gas suppliers will likely try to make their presence known through tactical mergers and acquisitions strategies where demand is high.
Learn more about M&A in the industrial gases business in 2013 and beyond, in the March issue of gasworld magazine or via www.gasworld.com/2001826.article