InterviewFears on double-dip recession could hit M&A

12 July 2010 22:46  [Source: ICIS news]

By Joseph Chang

NEW YORK (ICIS news)--Worries about a global double-dip recession could slow chemical industry mergers and acquisitions (M&A), a consultant said on Monday.

“While company cash levels are high and profitability is improving, signs of a potential double-dip recession could influence M&A volumes going forward,” said Paul Bjacek, global research lead for chemicals at consultancy Accenture.

“Business people are jittery about the economy - whether we’re in for a double-dip or an extended period of low growth - and that’s not conducive to doing deals,” he added.

Fears of a double-dip recession have been stoked by the European debt crisis and resulting government spending austerity measures, continuing high unemployment in the US and western Europe, and concerns about the Chinese government’s efforts to cool its economy.

Chemical industry M&A, where it did happen, would be driven by companies seeking to get closer to the end-user customer, said Bjacek.

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By: Joseph Chang
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