23 February 2012 17:14 [Source: ICIS news]
LONDON (ICIS)--Mergers and acquisitions (M&A) activity in the lubricants sector could increase in the near future because of the opportunities a post-recession climate will offer, said independent manufacturer Fuchs Petrolub on Thursday.
A decline in M&A activity during the recession of 2008-2009 has gone into reverse, rising from 10 deals in 2009 to 17 in 2011, said Apu Gosalia, the German company’s head of global strategic marketing and chief sustainability officer. He said that the trend could continue.
“More investment capital will be available and deals which were put on hold in the recession can move forward as the economy improves,” Gosalia said, speaking at the 16th ICIS World Base Oils & Lubricants Conference in London
Niche players that suffered in the recession and smaller firms that do not have the resources to bear the costs of directives such as the Regulation on Registration, Evaluation and Authorisation of Chemicals (Reach) will become attractive targets, he said.
Recent demergers, spin-offs and separations of major oil companies will also create opportunities, he added.
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