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    Home > Coatings News > Paints and Coatings Market > The global chemical M&A transaction market will remain strong in 2018

    The global chemical M&A transaction market will remain strong in 2018

    • Last Update: 2021-07-07
    • Source: Internet
    • Author: User
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    "Global Coatings Network News"

    "Global Coatings Network News"

    In the first quarter of 2018, global chemical M&A transactions were fully active compared with the same period last year.


    In the first quarter of 2018, global chemical M&A transactions were fully active compared with the same period last year.



    PricewaterhouseCoopers pointed out that after a strong start in the first quarter, global chemical trading activities are expected to maintain a strong momentum this year.



    Craig Kocek, Head of Chemical M&A Business at PricewaterhouseCoopers U.



    PricewaterhouseCoopers believes that super-large M&A transactions are the biggest reason why global chemical M&A transactions are expected to remain strong.



    The largest transaction that occurred in the global chemical M&A market in the first quarter of this year was the acquisition of Akzo Nobel's chemical business by The Carlyle Group for US$12.



    In recent years, private equity companies have been sitting on large amounts of cash, and investors in private equity companies have strongly requested the acquisition of chemical businesses, but large-scale strategic mergers and acquisitions have dominated the chemical mergers and acquisitions market.



    PricewaterhouseCoopers predicts that private equity firms will continue to make efforts to acquire chemical businesses this year, especially in the field of specialty chemicals.



    At the same time, trade tensions can have complex effects.




    The chemical industry is the main export industry of the United States.
    If trade tensions escalate in an all-round way, the US chemical industry will suffer huge losses and will have an impact on chemical mergers and acquisitions.
    However, PricewaterhouseCoopers believes that trade tensions may promote cross-border mergers and acquisitions because companies will choose to substitute capital for commodity transactions.

    The chemical industry is the main export industry of the United States.
    If trade tensions escalate in an all-round way, the US chemical industry will suffer huge losses and will have an impact on chemical mergers and acquisitions.
    However, PricewaterhouseCoopers believes that trade tensions may promote cross-border mergers and acquisitions because companies will choose to substitute capital for commodity transactions.




    PricewaterhouseCoopers said that raising interest rates is also a risk faced by chemical mergers and acquisitions, although the possibility is not high.
    The Fed has been steadily raising interest rates, but a sudden rate hike seems unlikely.
    Market participants said that a small interest rate hike will have a gradual impact.
    However, over time, higher interest rates mean changes in the M&A environment.

    PricewaterhouseCoopers said that raising interest rates is also a risk faced by chemical mergers and acquisitions, although the possibility is not high.
    The Fed has been steadily raising interest rates, but a sudden rate hike seems unlikely.
    Market participants said that a small interest rate hike will have a gradual impact.
    However, over time, higher interest rates mean changes in the M&A environment.




    Craig Kocek pointed out: "Rising interest rates will make debt financing more expensive, lower stock valuations, and companies with higher liquidity will have a competitive advantage.
    "

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