Global chemical mergers and acquisitions (M&A) activity is expected to remain buoyant in 2016, according to a report.
The report by Deloitte said that key chemical segments of fertilisers and agriculture chemicals, diversified, and industrial gases are all likely to experience strong M&A transactions. In the Americas region, the United States is expected to continue to be a prime M&A market in 2016. Within the European, Middle East, and African region, M&A activity will likely be centred in Western Europe as portfolio restructuring continues.
In the UK, investor sentiment is expected to remain strong, driving both inbound and outbound M&A activity and in Africa, consolidation will continue, underscored by shortage of water, population growth and an expanding middle class. Agricultural chemicals, specialty chemicals, and fine chemicals will remain top segments to watch in the Asia Pacific region, especially in China, says the report. Meanwhile, the Indian chemical industry M&A outlook for 2016 will likely be driven by commodity chemicals and significant transaction volumes expected in the specialty and agricultural chemicals segments.
