2007 a record for chem M&A - Young & Partners

02 January 2008 20:02  [Source: ICIS news]

By Joseph Chang

NEW YORK (ICIS news)--The global chemical industry completed $38bn (€26bn) in mergers and acquisitions (M&A) in the first three quarters of 2007 and the full year will turn out to be a record, investment bank Young & Partners said on Wednesday.

Mergers and acquisitions in 2007 are expected to surpass 2006’s all-time high of $42bn, said Young & Partners

 “Despite the credit crisis that started in July, 2007 was a record year for chemical M&A,” said Peter Young, president of Young & Partners. Completed full-year statistics will come out in late January.

The number of completed deals greater than $25m in value reached 63 in the first three quarters of 2007, slightly higher on an annualised basis than the 78 deals completed in 2006, according to Young & Partners.

“However, the debt issuance crisis has had a significant impact on all M&A activities, particularly with regard to private equity buyers, and this will continue into 2008,” said Young.

In the third quarter of 2007, private equity’s share of chemical deals plunged to 17% of the number of deals completed and 14% of the dollar volume versus 28% and 36%, respectively, through the first half of the year, according to the investment bank.

Eight deals were above $1bn in value in the first three quarters of 2007, well ahead of the five for all of 2006, noted Young & Partners.

Europe continued to be the hotbed of M&A activity, with 48% of the target businesses, versus 29% for the US and 24% for the rest of the world category.

($1.00 = €0.69)

By: Joseph Chang
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