Global chemical M&A to continue – PwC survey

29 May 2007 19:32  [Source: ICIS news]

TORONTO (ICIS news)--Chemical industry globalisation and consolidation, along with cross-border mergers and acquisitions (M&A), will continue, consultancy PricewaterhouseCoopers (PwC) said on Tuesday, citing a survey of industry chief executives.

 

More than 39% of the international chemical chief executives it surveyed had completed a cross-border acquisition last year, PwC said.

 

Of these acquisitions, more than 40% involved Asia, but Mexico, Latin America and Eastern Europe also offered growth potential, the consultancy said.

 

The industry witnessed massive structural changes in past years and consolidation and globalisation would continue, it said.

 

“We see multinationals and local players now seeking to cement customer-centred ownership arrangements by doing transactions to be close to where their customers are,” Saverio Fato, global chemicals leader at PwC, said.

 

The survey of 40 multinational chemicals companies also found that only 40% of chief executives were very confident about revenue growth prospects through June 2008.

 

The executives said low-cost competition, energy prices and security, and concerns over regulations were affecting prospects, PwC said.

 

Over-regulation ranked as the fourth largest threat to revenue growth, it said.

 

The executives were particularly concerned about the global impact of the European Union’s European Regulation, Evaluation and Authorisation of Chemicals (REACH), PwC said.

By: Stefan Baumgarten
+1 713 525 2653

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