2014-09-16-德勤-2014年全球化工行业并购展望_14页_2mb

2014 Global Chemical Industry Mergers and Acquisitions Outlook Summary

Core Content

The 2014 outlook for global chemical industry mergers and acquisitions (M&A) is shaped by evolving market dynamics, strategic portfolio realignment, and the influence of megatrends. The year 2013 saw a decline in M&A activity compared to 2012, with a notable shift in focus from traditional commodity chemicals to more value-added and innovative segments. Shareholder activism and hedge fund investment pressures have led chemical companies to reassess their business strategies and prioritize growth through strategic acquisitions.

Main Points

• M&A Trends in 2013:
  M&A activity in 2013 was characterized by a slowdown in volume and deal sizes, with a notable shift in focus towards specific business lines such as titanium dioxide, agrochemicals, and health and nutrition. This reflects a broader trend of companies reevaluating their portfolios to focus on high-growth areas.

• Megatrends Driving M&A in 2014:
  Key megatrends influencing M&A activity in 2014 include:

  • Population Growth and Middle Class Expansion: Increasing demand for agrochemicals and health and nutrition products.
  • Sustainability: Rising interest in bio-based and green chemicals as alternatives to traditional petrochemicals.
  • Technological Innovation: The need for new, environmentally friendly solutions in agriculture and other sectors.

• End Markets of Interest:

  • Agrochemicals: Continued focus on innovative crop protection products due to increasing resistance to traditional herbicides and pesticides.
  • Bio-based/Green Chemicals: Expected to grow as companies seek to develop sustainable alternatives to conventional chemicals.
  • Health and Nutrition: Strong demand for health-related products, especially in light of an aging population and chronic disease concerns.

• Commodity Chemicals:
  Commodity chemicals have historically been the dominant M&A target, but recent activity has shown a shift towards specialty and value-added areas. Despite this, divestitures of non-strategic commodity businesses are expected to continue, potentially spurring M&A activity in the sector.

• Geographic Focus:

  • North America and Europe: Remain the top regions for M&A activity, driven by portfolio realignment and strategic moves.
  • Asia Pacific: Experiences cyclical activity, with China as the primary driver. Consolidation is expected to continue.
  • Latin America: Shows a trend of consolidation, particularly in petrochemicals and fertilizers. The specialty chemicals sector is less consolidated and may see more activity in 2014.
  • Middle East: Despite political tensions, the region is expected to stabilize and see increased M&A activity due to relative security and economic growth.

Key Information

• Deal Volume and Value (2009–2013):

  • Volume: 450 (2009), 579 (2010), 646 (2011), 609 (2012), 537 (2013)
  • Value (US$ millions): 15,591 (2009), 55,562 (2010), 55,121 (2011), 41,781 (2012), 31,752 (2013)

• Notable Transactions in 2013:

  • Agrochemicals: DuPont's spin-off of Performance Chemicals, Huntsman's acquisition of Rockwood's TiO2 business, FMC's acquisition of Epax.
  • Bio-based/Green Chemicals: BASF's joint ventures with Corbion Purac and Cargill, Royal DSM's partnership with POET.
  • Health and Nutrition: Royal DSM's acquisition of Fortitech, BASF's acquisitions of Equateq and Pronova BioParma, FMC's acquisition of Epax.
  • Commodity Chemicals: Continued focus on divesting non-strategic segments.
  • Specialty Chemicals: Increased activity, including Braskem's expansion and acquisitions, Clariant's acquisitions of Champion Technologies and Ultimate EOR.

• Region-Specific Trends:

  • North America: M&A activity declined in 2013 due to tax considerations and market valuations. Expected to see continued large-scale deals in 2014.
  • Europe: High deal activity due to low leverage and interest rates, with a trend towards small, strategic bolt-on acquisitions.
  • Asia Pacific: China leads M&A activity with a focus on both domestic and international transactions. Expected to see more consolidation.
  • Latin America: Strong consolidation in petrochemicals and fertilizers, with Braskem and Vale as key players. Specialty chemicals may see more activity.
  • Middle East: Stabilization and increased M&A activity anticipated due to relative security and economic opportunities.

Outlook for 2014

• M&A activity is expected to continue with a focus on strategic portfolio realignment and value creation.
• Agrochemicals, bio-based/green chemicals, and health and nutrition are likely to be key areas for M&A in 2014.
• North America and Europe will remain the top regions for M&A, with a potential for larger deals as the European recovery gains traction.
• Asia Pacific will continue to be a key market, with China as a central player.
• Latin America may see further consolidation in specialty chemicals, with companies like Braskem expanding into North America and Europe.
• The Middle East is expected to stabilize and grow in M&A activity, particularly in the petrochemical and chemical sectors.

Conclusion

The 2014 M&A outlook for the global chemical industry is one of strategic realignment and continued focus on high-growth, value-added sectors. While commodity chemicals remain a significant target, the industry is increasingly looking towards agrochemicals, bio-based/green chemicals, and health and nutrition to drive innovation and meet evolving market demands. Regional dynamics, particularly in North America, Europe, and Asia Pacific, will play a crucial role in shaping the M&A landscape.