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Chemicals and the Economy

Chemical industry data shows reflation remains hope, not reality

Western central bankers are convinced reflation and economic growth are finally underway as a result of their $14tn stimulus programmes.  But the best leading indicator for the global economy – capacity utilisation (CU%) in the global chemical industry – is saying they are wrong.  The CU% has an 88% correlation with actual GDP growth, far […]

The unacceptable face of banking

Banks are essential in any modern society. Their role is two-fold: • To take in deposits from companies and individuals • To lend out this money prudently to other companies and individuals Both are difficult roles to fulfil. Banking therefore requires employees who have both talent and integrity. They must be able to look after […]

Sir James Black dies

The death of Sir James Black, Nobel Prize winner and one of the giants of the modern pharmaceutical industry, has been announced this week. He began work at the blog’s former company, ICI after the War. The idea was to build on the success seen with drugs such as penicillin. It was, as we know […]

5 signs of a failing business

The Toyota problems, with over 9 million autos being recalled around the world, has set the blog thinking about how to spot corporate disaster in the making. One excellent source of insight is Prof Jim Collins’ book, ‘How the Mighty Fall’, published last year. This suggests that doomed businesses pass through 5 key stages. Encouragingly, […]

Dow pays $78.97/share for Rohm & Haas

The blog has always had enormous respect for Dow. This was due to their ability to manage unconventional risks, in a way that other chemical companies (such as the blog’s former employer, ICI), found impossible. Even when things went wrong, they always had a Plan B, which allowed them to exit on a sensible basis. […]

3 key questions for any Board

What are the key questions that need to be asked when discussing any budget or strategy proposal? I have just found the answer, from a master in the field. Sir Maurice Hodgson is recognised as one of the greatest ICI Chairmen. Under him, the company became a truly global leader, moving away from its ‘imperial’ […]

ICI and Akzo (2)

It seems from the media comment that Akzo is likely to announce an agreed bid for ICI tomorrow (in order to meet Friday’s Takeover Panel deadline) of around £6.70 plus the dividend. Will this be the end of the story? The share price suggests not, trading at c£6.30 as I write, some 7% below the […]

ICI and Akzo

ICI has experience of fighting off unwelcome acquisitions. And Akzo may find itself in a difficult position if ICI wins again. Unless this bid, like Hanson’s in 1991, marks the ‘top’ in the currrent M&A cycle.

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