Sunday Recap 42
M&A Emerges From Partial Hibernation – Too Soon?
- Global chemical sector M&A activity has recently surged. Some remain special situations, but others are likely the result of discussions that started before the Pandemic, where both sides are now comfortable that they understand the risks.
- Despite the recent uptick in sector M&A activity, prior recessions delayed many major strategic moves as companies waited to see how the landscape settled, given the general acceleration of commoditization during periods of stress. We do not expect this time will be different but discuss some potential exceptions.
- The overall global chemical market heads into the last month of the year with higher prices and momentum than we would have expected 6 months ago. So far, 4Q20 shows little seasonal weakness relative to 3Q, and though December may be weaker MoM, we find sector indicators broadly suggesting oversupply in 1H21.
Last week we discussed 32 Chemical and related products and 86 Companies
This coming Wednesday we introduce a new weekly service, Climate, Renewable, Energy Transition and ESG subjects that we have written about extensively this year – more details here. Our weekly ESG etc. round up moves to this new service.
See PDF below for all charts