KBS - Chemical Manufacturing and Development - Market Insight

M&A ACTIVITY IS RISING IN THE CHEMICALS INDUSTRY

Chemicals industry M&A activity: Total deal value of deals globally ($bn)

Small and mid-size deals ($5m

Large deals ($1bn deal value)

300

250

Average = $161bn

200

150

Average = $90bn

224

234

100

151

86

77

72

73

57

50

60

20 53

32

37

28

31

26

28

26

21

23

24

25

-

2014 2015 2016 2017 2018 2019 2020 2021

2022 2023 2024

SOURCE: Mergermarket, Natrium Capital. Note: Excludes lapsed deals and deals in China

Since Q2 2023, deal value in the chemical industry has been steadily climbing. This sector, along with most others, suffered during the COVID-19 pandemic and the chemicals M&A market remained turbulent through to Q1 2023.

There was a resurgence from Q2 2023, indicating momentum as conditions stabilised. Interest rates also largely stabilised in 2023, despite remaining comparatively high, leading to 148 global deals in the speciality chemicals sector being completed in H2 2024 – nine more than the long-term average. Total deal value for H2 2024 reached $13.9bn, representing a 113% increase from H1 2024. H2 2024 also saw an uptick in high-value transactions. Although smaller deals, less than £75m, were the most prominent, the rise in deal values indicates companies and investors are committing to larger investments into the chemical industry.