GoDubai
  
  
  
  
Citylife > Press Release
  Home Contact us Add to Favourites
Most Recent Postings
More Press Releses
Featured Sections

Event Finder
A daily roundup of exhibitions, promotions and other events in Dubai and the rest of the Emirates.
Submit an Event
Latest Dubai Press Releases >>

 
  Share

Dubai, UAE, March 19, 2019:  Global chemical mergers and acquisitions (M&A) activity in 2019 is expected to pull back slightly from 2018 levels against a backdrop of uncertainty—rising interest rates, trade tensions, and slowing economic growth. Despite a potential decrease in M&A deal volume, Deloitte Global's 2019 chemical industry mergers and acquisitions outlook predicts that there will still be a robust market for M&A in the industry.

Global M&A volume reached 600 deals in 2018, a decline of 5 percent compared to 2017, but total M&A value was still higher than in each of the years from 2010 to 2013. After a slow first quarter, deal volume increased in each successive quarter in 2018, and deal values were also strong, with billion dollar-deals increasing in both quantity and value.

“In 2019, we expect a modest decline in chemical industry M&A activity, but as demonstrated in the past, activity should still be strong despite global uncertainty,” says  Bart Cornelissen, Regional Energy & Resources Leader and Managing Partner of Monitor Deloitte, Middle East. “Underlying conditions for a strong M&A market remain intact—ample cash on-hand for buyers, availability of relatively cheap credit, and the desire to increase ROI for investors.”

For M&A activity in the chemical industry to continue to be strong, there will be headwinds for organizations to navigate in the coming year. The IMF recently cut its global economic growth rate expectation to 3.5 percent in 2019; growth in industrial production is also under pressure in many economies. Additionally, trade conflicts threaten to increase uncertainty and lessen the attractiveness of cross-border M&A deals. Chemical industry companies will be closely following trade negotiations between the United States and China, as well as ongoing Brexit developments.

“Protectionism and trade concerns are weighing heavily on companies and global regulators continue to heavily scrutinize deals. As a result, we may see hesitancy towards cross-border M&A deals,” continues Cornelissen. “However, the equity market declined in the fourth quarter, which may make high deal valuations—a limiting factor for M&A in 2018—more palatable to investors moving forward.”

There is also an ongoing discussion in the industry about the “circular economy” to reduce plastic waste. Significant actions are being taken in an effort to create programs and solutions that can be applied globally to eliminate harmful pollutants, especially in areas with “high plastic leakage.” These efforts will likely result in new innovation and startups and could drive additional M&A activity. 

Activist investors continue to be a force in the industry, making a significant impact on the chemical M&A market in terms of shaping deals and impacting companies' strategic direction. Shareholder activists are expected to continue pressuring companies, and in some cases, their investments may signal more divestitures in 2019. 

“An important trend to observe in the coming year is the impact of the digital and circular economy on chemical industry M&A,” says Cornelissen. “Highly diversified companies are already leveraging digital technologies across many functions. M&A will continue to be a tool for companies to stay ahead of competitors and drive transformation.”  
 



Posted by : GoDubai Editorial Team
Viewed 5268 times
Posted on : Tuesday, March 19, 2019  
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of GoDubai.com.
Previous Story : Empower saves 305 million gallons of potable water in 2018, equivalent to the amount of water in 555...
Next Story : Visa partners with Starbucks & Hardee's to help promote the use of Apple Pay in KSA and UAE
Email this article Print this article

Share this article with your friends and followers
NewsVine

Comments

Back to Top  
Most Viewed Press Release posted in the last 7 days
Lockdown Showdown: Jaguar I-pace Etrophy Series to Get Back on Track in Berlin i...
Three Eggs get Yemeni National a Guinness World Records Title
Omega's Antimagnetic Tourbillon Is a Watchmaking Breakthrough
Lamborghini SCV12: Squadra Corse Hypercar Ready to Hit the Track
The new BMW M5 and BMW M5 Competition
Toric Tourbillon Slate
GROHE Smart Control Review
Twitter tests Tweeting with Voice
Saxo Bank Launches Loyalty Program for MENA Region Clients
Hyundai Motor and Sony Pictures Entertainment Announce Unique and Pioneering Mul...
American Aesthetic Medical Center Has Something in Store for the Esthetical Figu...
WTTC Launches Safe Travels Protocols for Attractions, Car Hire and Short-Term Rental
NUDESTIX Launches - Nudies Blush, Bronze, and Glow Shade Extension
Volvo Cars Chengdu Car Plant Powered by 100 Per Cent Renewable Electricity
Range Rover Marks 50 Years of All-terrain Innovation and Luxury With Exclusive N...
Under-12 and Over-60 Can Now Take Part in Sports Activities: Dubai Sports Council
Dabur Ensures Safety with Hand Sanitizers and Personal Protection Kits as UAE Es...
Let's Brigthen Up! The Face Shop's Ultimate Summer Skincare Range From Belif is Here!
Handy Helper for Content Creators: The Compact A6100 Mirrorless Camera from Sony...
Pre-orders for Samsung's Galaxy S20+ 5G and Galaxy Buds+ BTS Edition now open in...
Experts Highlight need for Young Talent to Develop Skills for a Post-Covid-19 World
Dabur Launches Pure Organic Coconut Oil: Natural Protection for Hair, Skin, and ...
GEMS Wellington Academy – Al Khail Improves Rating to 'Very Good' in KHDA DSIB 2...
Etihad Airways to Recommence Flights to Athens
Dubai Sees Pronounced Uptick in Demand for Retail Units
Book Building of Amlak International's IPO of 30% of Shares
Sanctuary for the Senses: All-New Lincoln Corsair Arrives with Whisper-Quiet, Co...
Essence Spring/Summer 2020 Collection
Registration Opens for Training On the Camel Trek and Camel Marathon for Expats
Covid-19 Leads UAE Businesses to Adopt Upgraded Green Building Solutions
Dubai Sports Council Discuss Upcoming Sports Events With Federations and Organisers
Dubai Sports Council to Celebrate Dubai's COVID-19 Heroes Through Commemorative ...
Turkish Airlines Was the Busiest Operator in the Eurocontrol Area After Restarti...
Celebrate Father's Day With Parmigiani Fleurier Tondagraph Slate'
INFINITI of Arabian Automobiles presents Dubai Islamic Bank customers Super Sale...
Crude Oil Headwinds on Virus and Technicals
Customers can Benefit from Increasing Gold Rate by just Paying 10% Advance at Ma...
Canadian University Dubai Receives Prestigious Certification in Education for Pu...
Report Reveals the Six Fintech Innovations That Will Boost the ‘Financial Health...
Serco Middle East Appoints New Managing Director for Dubai Metro and Dubai Tram
Big Bang Integral King Gold
Pan Emirates Unveils Exclusive New Collection
Digital Vision Technology Signals On-Track Success for Panasonic Jaguar Racing
Schneider Electric Extends Strategic Partnerships with AVEVA, Lenovo and Stratus...
Celebrate World Music Day with HONOR Magic Earbuds
The 11th Edition of the Arab Fashion Week to Launch Virtually Today, from June 2...
New Bentayga to Launch Beyond100
Cairo Amman Bank Adopts the Latest Technology to Enhance Performance and Securit...
Celebrate Summer Safely with the New, Shopping Normal at BurJuman
Registration open for Dubai Watersports Summer Week