Deloitte released its report, entitled Future Outlook on Mergers and Acquisitions in the Global Chemical Industries for 2019. The report includes expectations that mergers and acquisitions activities in the chemical industries will decline from their levels in the past year, amidst the climate of The stability in the global economy represented by high interest rates, some tension in global trade relations, and slow economic growth rates.
In spite of the possible decrease in the volume of mergers and acquisitions, the report expected that good activity in mergers and acquisitions in this sector will continue.
The chemical industries sector has witnessed 600 mergers and acquisitions deals in the world in 2018, a decrease of 5% compared to 2017. Despite this, the total value of those deals remained higher Of deals between 2010 and 2013. After the slow pace in the first quarter, the volume of transactions increased in the next three quarters of 2018, and trading values were also high, with transactions increasing in billions of dollars in quantity and value.
In this regard, observers believe that maintaining the activities of mergers and acquisitions in the chemical industries will keep its momentum in 2019 not easy and free from the challenges that the chemical industry will face this year. The International Monetary Fund recently lowered its forecast for global economic growth to 3.5% in 2019, and growth in industrial production is also under pressure in many economies.
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