The hottest global chemical M & A in 2012 has a lo

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With investors worried about the uncertainty of the global economic outlook and the intensification of financing difficulties, global chemical industry experienced the momentum of mergers and acquisitions this year, and the market is expected to decline in 2012

in fact, the momentum has weakened in the second half of this year. Although the atmosphere of the acquisition and trading market is good, the trading assets are limited

due to the volatile economic situation and the plight of the high-yield financing market, the peak period of M & A transactions in the chemical market, both in quantity and amount, has become a thing of the past. The number of M & A transactions has decreased significantly, falling every quarter

According to the analysis of Peter young, President and managing director of youngpartners, the share price of mergers and acquisitions publicly announced in the third quarter of this year was $64billion, compared with $39billion in the whole year of last year. Although the momentum of M & A transactions in the first three quarters was strong, due to the continued European debt crisis, another round of economic recession may come, and the trading volume fell every quarter. Among the 16 mergers and acquisitions announced in the third quarter of this year, the total amount was US $11.3 billion, far lower than the US $34billion of 23 mergers and acquisitions in the second quarter. And the decreasing trend has not stopped. From the end of September to the middle of November, only five M & A transactions totaling $506million have been completed in the world. The haze brought by European debt suppressed buyers and made them postpone trading activities

in 2011, financial buyers faced the greatest challenge in acquisition transactions. In the chemical M & a market in the first three quarters of this year, the share of private equity companies has fallen from 21% in 2010 to 5%

the transactions between companies in Asian and European markets in 2011 further promoted M & A activities. China played a leading role and approved some larger transactions. China Bluestar acquired Eken, a Norwegian silicon dioxide manufacturer, for us $2billion, and Sinopec acquired 50% of the equity of Swiss Yingli refining company for us $1billion

although the acquisition activity in the Asian market was active, the transactions of more than US $50million carried out by Brazil, Russia, India and China (the four golden diamond countries) weakened in the third quarter

China has the most obvious decline, with the trading volume and trading volume down 55% compared with the second quarter. China's economic growth will decline to less than double digits

due to the weakening demand for Chinese products in the international market and China's policy problems (such as the economic growth rate of 7%), these have caused certain pressure on economic growth. However, the economic recovery continues. Although the economy is likely to decline again, strategic investors hope to make full use of M & A opportunities. Unless there is a major economic crisis, the number of mergers and acquisitions is expected to weaken in early 2012, but the overall situation is still optimistic. Chemical manufacturers are ready to deal with the financial liquidity crisis

for the first time in 2009, the chemical industry has rebounded from the downturn of being a necessary testing instrument for metallurgy, machinery manufacturing and other units, and its profitability has recovered to the highest level in mid-2008

however, the high share price in the third quarter reduced the trading volume, while the limited issuance of bank bonds in the fourth quarter intensified the weakening trend

many bankers said that although the platform of corporate culture was set up, and the merger and acquisition activities slowed down, the purchase demand of chemical assets was strong

insiders have a strong desire to facilitate transactions. In addition, enterprises have a large amount of cash and low leverage. There are fewer and fewer public auctions, and more one-on-one negotiations. The desire to buy is still strong, but there is a lack of opportunities. Even companies with large assets and liabilities have no intention to sell

in the first half of 2011, supported by the optimism of insiders about the future market, the market trading, including public trading, was good. Among them, Yikang chemical of the United States acquired Nalco, and DuPont acquired Danisco of Denmark

according to the analysis of insiders, there may be more large mergers and acquisitions of similar scale in 2012, but before the global situation becomes more stable, there may not be real mergers and acquisitions

the shale gas phenomenon in North America has deepened the confidence of market participants in the recovery of chemical manufacturing and aroused more interest in purchasing

people on the floor are full of confidence in the development of the chemical industry in the North American market. In the next few years, the chemical industry is likely to sweep away the decline of the past 10 years and vigorously revive the market

compared with European and Asian markets, the advantages of low-cost energy and raw materials in the U.S. market are enough to offset its human expenditure. North American products may be exported to all parts of the world

Leland Harrs, general manager of investment banking and co head of finance of Prince Ridge Group, said, "the company has sufficient capital, and there is still a lot of room for development, and financial investors also maintain a strong interest. It is expected that the trading situation in 2012 will be good, and there will be basically no big fluctuations."

because the assets of many private equity investment enterprises are about to exceed the holding period, these enterprises may be acquired or merged next year

Oppenheimer, a rating agency, is expected to disclose the chemical assets of private equity investment enterprises in the initial public offering: "private equity investment enterprises can choose to raise equity interests through the open market." Chemical companies participating in the initial public offering include metu high performance materials and MacDermid

since the second half of 2011, the global economic growth has slowed down significantly, and the European debt crisis has also brought more uncertainties. Therefore, the views of buyers and sellers on the later market have become the main factors hindering M & A activities in the short term

Damon Warmack, vice president of Eastman's development and Strategy Department, said: "entering 2012, sellers want to sell more, while buyers reduce their expected income under the influence of environmental uncertainties, which widens the inquiry and offer gap between buyers."

trade fell in the middle of this year, which had a great negative impact on the M & a market. Michael McGovern, head of princeridge's debt capital market, pointed out that the U.S. debt ceiling crisis and the European debt crisis have also curbed the debt market. Zachariades of wellen group said, "the market panic caused by the European debt crisis and other negative macroeconomic factors is about to disappear in the chemical industry.201 then completely lock the black knob, and the M & A activity in the chemical industry will remain strong for two years, and the M & A activity will become the preferred development strategy of the group and private equity investment enterprises."

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