06 November 2012 17:01 [Source: ICIS news]
By Joseph Chang
“We expect M&A activity to increase next year, particularly in the
“Regardless of who wins the presidency on Tuesday, we are convinced that the global economy is already on the mend and that investment in new hiring, CAPX [capital spending] and M&A will grow significantly in 2013,” he added.
Peter Hall, also partner at The Valence Group, said that “acquirers who have been close to the finish line on a deal in the past couple of months may well have been back-peddling on inking a deal pending the outcome of the election”.
“Once the election is out the way, regardless of the outcome, there will likely be a number of deals that will finally be pushed forward,” he added.
The end of months of political wrangling over the elections will also go a long way in boosting confidence among senior management, said Zachariades.
“M&A activity also depends to a very large degree on CEO/board confidence. The political situation here in the
On the sell side, some sellers that have been holding off, pending the outcome of the
“These new processes will translate into deal activity during the second half of 2013,” he said.
Zachariades characterises the current chemical M&A environment as buoyant from a transaction volume standpoint, but slightly lower in terms of dollar value of deals.
“The sub-billion dollar market is holding up very well as CEOs continue to look for more bolt-on opportunities versus transformational or opportunistic step-outs,” Zachariades said.
“From a global perspective, Asia continues to be highly attractive, both for in-bound and out-bound M&A, and
Over the last five years, around 35% of all global M&A involved an Asia or
“We see that trend not only increasing but accelerating, with levels likely to reach 50% in the next 5-10 years,” said Zachariades.
This year has seen polyvinyl chloride (PVC) producer Georgia Gulf agreeing to merge with PPG Industries’s chlor-alkali business in a $2.1bn (€1.6bn) deal, and two competing groups battling to buy out butadiene (BD) producer TPC Group.
“The interest is being driven by low-cost shale gas, and we believe there will be more activity in certain sectors of the commodity chemical market that stand to benefit from this phenomenon,” said Zachariades.
“The resurgence of the
While overall chemical M&A activity is likely to rise regardless of who wins the
“Romney has been very vocal in describing
“An Obama win is likely to be positive for M&A flows between the
The banker said a Romney win may cause Chinese acquirers to be more reluctant to invest in the
“Chinese business leaders who are looking to make acquisitions in the
($1 = €0.78)
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