According to investment bank said that in early 2009 reached its lowest point, the global industrial M & A recovery in 2010.
Investment bank Young & Partners president Peter Young said: "With the financial markets improved in 2010, we will see a substantial increase in trading volume." He added: "The chemical industry M & A market in the first quarter of 2009, bottomed out, Since then, the M & A activity has been increasing. "
The size of global capital more than 25 million U.S. dollars (18 million euros) in the number of chemical industry mergers and acquisitions from the first quarter of 2009 was increased to four from seven in the second quarter and third quarter of 8 cases. In 2008 the three transactions announced acquisition of Dow Chemical Company U.S. specialty chemicals company Rohm and Haas big, big German companies BASF to buy Switzerland's Ciba Specialty Chemicals, Japan, Mitsubishi Rayon's acquisition of UK-methyl propene Methyl manufacturer Lucite International. At the end of the close of the transaction in the third quarter, which accounted for the three transactions is about 200 billion U.S. dollars. The final total for the transaction in 2009 is unlikely to more than 30 billion U.S. dollars.
However, in 2010 the situation is expected to improve due to the 2009 global economic recession and the freezing of some of the transaction may be in the next resurrection
Since the trough in March 2009 since the financial markets had greatly improved, stable or further improved, could prompt another round of acquisitions.
He said: "Financial markets have been great improvement in stock and bond issuance is very active." He also said that investment-oriented buyers have a very attractive return on investment, once the more definitive aspects of the economy and earnings, and this may encourage mergers and acquisitions . Even a good bond market returns are also back, the bond market for private equity investment in the acquisition is very important.
Recently the chemical industry revenue comes from a good bond RPM International, Inc. (October 3 billion) and Solutia (September 4 billion). 2009 in the first three quarters, chemical assets, private capital buyers in financial terms only 5% of volume, accounting for 0.2% of transactions are not traded, while the turnover in 2007 accounted for 22% in 2008 accounted for 15%. An official said: "The financial terms of more stringent, a larger share of the acquisition of shares. In my opinion, if there is cash, in the majority of acquisitions do not have major obstacles."
In 2009 as a whole, private capital to buy bonds, buyers are more active than the acquisition. Now private equity companies in mergers and acquisitions, is not the best time. Pipelines have little asset for sale, the price of M & A does not induce the companies to sell. Profit before interest, taxes, depreciation and amortization have great recovery, about 7-9 times the price of history, but did not go to M & A market. Income is not good to encourage sellers to sell to the market level, but in 2010, will gradually emerge.
Some chemical transactions are conducted, such as Reliance Industries India's bid to acquire bankrupt Helanlaiang Lauderdale Basel, Japan's Mitsubishi Chemical Co., Ltd. Mitsubishi Rayon plans to acquire companies, these companies are not seeing big deal.
Now Fidelity Industrial Company / Leon Dyer situation in Basel, a conclusion was premature, as Reliance Industries bid at this stage are still preliminary, not binding, but also in Basel Leon Dyer consider alternatives. Mitsubishi is the species specificity of the transaction, Japan's chemical industry continues to rationalize, has been done for many years.
Many of the largest chemical company in no hurry to big transactions. As financial markets slump, buyers of assets are still relatively small, there is no impetus to do a larger deal.
Investment bank Young & Partners president Peter Young said: "With the financial markets improved in 2010, we will see a substantial increase in trading volume." He added: "The chemical industry M & A market in the first quarter of 2009, bottomed out, Since then, the M & A activity has been increasing. "
The size of global capital more than 25 million U.S. dollars (18 million euros) in the number of chemical industry mergers and acquisitions from the first quarter of 2009 was increased to four from seven in the second quarter and third quarter of 8 cases. In 2008 the three transactions announced acquisition of Dow Chemical Company U.S. specialty chemicals company Rohm and Haas big, big German companies BASF to buy Switzerland's Ciba Specialty Chemicals, Japan, Mitsubishi Rayon's acquisition of UK-methyl propene Methyl manufacturer Lucite International. At the end of the close of the transaction in the third quarter, which accounted for the three transactions is about 200 billion U.S. dollars. The final total for the transaction in 2009 is unlikely to more than 30 billion U.S. dollars.
However, in 2010 the situation is expected to improve due to the 2009 global economic recession and the freezing of some of the transaction may be in the next resurrection
Since the trough in March 2009 since the financial markets had greatly improved, stable or further improved, could prompt another round of acquisitions.
He said: "Financial markets have been great improvement in stock and bond issuance is very active." He also said that investment-oriented buyers have a very attractive return on investment, once the more definitive aspects of the economy and earnings, and this may encourage mergers and acquisitions . Even a good bond market returns are also back, the bond market for private equity investment in the acquisition is very important.
Recently the chemical industry revenue comes from a good bond RPM International, Inc. (October 3 billion) and Solutia (September 4 billion). 2009 in the first three quarters, chemical assets, private capital buyers in financial terms only 5% of volume, accounting for 0.2% of transactions are not traded, while the turnover in 2007 accounted for 22% in 2008 accounted for 15%. An official said: "The financial terms of more stringent, a larger share of the acquisition of shares. In my opinion, if there is cash, in the majority of acquisitions do not have major obstacles."
In 2009 as a whole, private capital to buy bonds, buyers are more active than the acquisition. Now private equity companies in mergers and acquisitions, is not the best time. Pipelines have little asset for sale, the price of M & A does not induce the companies to sell. Profit before interest, taxes, depreciation and amortization have great recovery, about 7-9 times the price of history, but did not go to M & A market. Income is not good to encourage sellers to sell to the market level, but in 2010, will gradually emerge.
Some chemical transactions are conducted, such as Reliance Industries India's bid to acquire bankrupt Helanlaiang Lauderdale Basel, Japan's Mitsubishi Chemical Co., Ltd. Mitsubishi Rayon plans to acquire companies, these companies are not seeing big deal.
Now Fidelity Industrial Company / Leon Dyer situation in Basel, a conclusion was premature, as Reliance Industries bid at this stage are still preliminary, not binding, but also in Basel Leon Dyer consider alternatives. Mitsubishi is the species specificity of the transaction, Japan's chemical industry continues to rationalize, has been done for many years.
Many of the largest chemical company in no hurry to big transactions. As financial markets slump, buyers of assets are still relatively small, there is no impetus to do a larger deal.
