'The merger of Dow Corps in 2017, the acquisition of Akzo Nobel by PPG withdrawal, the acquisition of Schulman by LyondellBasell, the merger of Linde and Praxair left a deep impression on the industry'
In the past year, the chemical industry started to pick up significantly and many chemical giants performed well. With the recovery of the industry, the industry mergers and acquisitions once again set off a new upsurge.
According to the latest results of the chemical companies announced in the near future, CBN No.1 said that benefiting from the pick-up of the entire market, many enterprises have witnessed a substantial growth in 2017. Benefiting from strong market demand for high-performance plastics and a sharp increase in profit margin , Sales of Covestro achieved a complete spin-off from Bayer in the middle of last year reached EUR14.1 billion in 2017, an increase of 18.8% over the previous year. BASF achieved a "good start" in 2018 following its good business performance in 2017. The A financial reporter learned from BASF that BASF Group's sales in the fourth quarter of 2017 increased 8% YoY to EUR16.1 billion, the selling price increased 9% and the sales volume increased 4%.
Earlier, SABIC, DuPont Dow and the Bayer Group also announced a more substantial earnings growth in FY17.
For the full rebound in the chemical industry, Dow Chemical chairman and CEO Andrew Liveris said: "The global economy is becoming more dynamic with significant advantages in manufacturing, investment and trade." In the chemical downstream business such as Automotive, infrastructure, consumer care, electronics and agriculture are also picking up across the board.
The improvement of business performance of chemical industry indicates that the overall cyclical market chemical industry pick up, and in the case of increasing cash flow, the early layout of mergers and acquisitions became the first stage of these chemical companies the primary strategy.
The 2018 Chemical Industry M & A Outlook released by Deloitte Touche Tohmatsu reported that global chemical M & A activity is still expected to be still high due to the global economic recovery, continued low financing costs and the industry's interest in business growth and transformation through M & A transactions. Will remain strong Deloitte reports that global chemical industry M & A transactions in 2017 amounted to 46.4 billion US dollars, lower than the transaction levels in 2015 and 2016, mainly because of the record high in 2015 and 2016 M & A transactions Large M & A deals are rare in 2017, but the number of M & A deals in the global chemical industry in 2017 is still very strong at 637.
DanSchweller, head of mergers and acquisitions of chemicals and specialty materials business at Deloitte Touche Tohmatsu, said: "The number of global chemical M & A transactions may decline slightly in 2018, but the global chemical industry will still have another strong M & A transaction. Trading activity remains strong and there is still strong industry interest in further enhancing shareholder returns through M & A transactions. '
In fact, the merger of Dow Corps in 2017, the PPG withdrew its takeover bid for AkzoNobel, the acquisition of Schulman by LyondellBasell, the merger of Linde and Praxair, and others left a deep impression on the industry.
CBN reporter learned that in 2017 some of the large group mergers span to 2018. Focusing on the marketplace of most interest by 2018 is Bayer's acquisition of Monsanto. "Our acquisition of Monsanto has taken important steps Pace, "Werner Baumann, chairman of the Bayer Group Management Board, said in a earnings press conference in Leverkusen.
For Monsanto's takeover bid, Bayer received further approval last year.While Bayer currently continues to work closely with the agencies, but the review process obviously takes more time.The company is now the goal is to be completed in the second quarter of 2018 Trading, 'Paulman explained,' does not affect the company's expectations of regulatory clearance, nor does it affect the company's firm confidence in the move. '
In an interview with CBN reporter, Yusuf, CEO of Saudi Basic Industries Corporation, said that the continuous expansion of global chemical mergers and acquisitions shows that the chemical industry is constantly exploring the path of globalization and must seek advanced analysis and application trends in the market. Such a trend will continue to expand and continue in the next few years.
With the improvement of the market, many chemical giant enterprises have shown their determination to increase investment in China.
The company has expanded its production network in Western China to Korla in Xinjiang and gradually increased its manufacturing base of MDI in Chongqing and its production capacity in Guangdong Maoming Isononanol (INA) jointly with Sinopec Corp. Utilization rate, and at the same time, it is increasing its local network and product portfolio through asset acquisitions both at home and abroad. "Dr. Ke Diwen, President of BASF Asia Pacific and Greater China, told CBI.
The third quarter of 2017 in the United States suffered a hurricane, the performance of China has surpassed the United States to become Covestro's largest market, and Covestro will continue to increase investment in China in the future. Covestro China President Sheng Bingyong to the A financial reporter said that new energy vehicles, wind energy and light materials will be Covert in the Chinese market to further force the growth point.