Flexibility in global chemical M&A transactions

Federico Mennera, global head of chemicals and materials at investment bank Rothschild, said: “I think that today’s private equity firms and strategic buyers are dealing with relatively straightforward M&A deals compared to most M&A deals in the past.

Rothschild AG advised on the acquisition of DSM's engineered materials division by Germany's Lanxess AG and private equity firm Acron Capital

In January, Switzerland-based Clariant sold its pigments business to pigment producer Huybach Group and private equity firm SK Capital for 805 million Swiss francs

Increased flexibility in M&A transactions can serve multiple purposes

Economic Situation Facilitates Flexible M&A

This year, global chemical M&A activity has slowed as a whole, especially in Europe, where geopolitical conflict is prominent, due to rising risks of a global recession, rising interest rates and reduced financing channels

In May, SK Capital agreed to acquire Valtris Specialty Chemicals, a U.

　　"Private equity firms are playing an increasingly important role in chemical M&A transactions," Menella said