Lehman bankruptcy may spur chemical sector M&A

15 September 2008 19:47  [Source: ICIS news]

NEW YORK (ICIS news)--The bankruptcy of Lehman Brothers and the exacerbation of the credit crisis could lead to further mergers and acquisitions (M&A) in the chemical sector, a leading analyst said on Monday.

 

“Because of the turmoil, there could be more interest in consolidation,” said Laurence Alexander, an analyst with Jefferies & Co.

 

“Chemical companies may be more open to a sale,” he said.

 

The Lehman bankruptcy and overall credit crisis may lead investors to take a closer look at company balance sheets, said Alexander.

 

“The main question is whether the credit market dislocations will have an impact on credit availability next year, and how sensitive the market will be to balance sheet ratios,” he said.

 

“It’s possible the market may penalize companies for having high debt levels,” Alexander said.

 

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By: Joseph Chang
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