Daily Chemical Reactions | Sunday Thematic & Weekly Recap

Is Chemical Sector M&A Rising Because Its Approval Is Easier? 
November 14, 2021
Commodities Mentioned:
PVC, Polypropylene, Polyethylene, Polyurethane, Polystyrene, Polycarbonate, PET, Propylene, Ethylene, Lithium, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha, Recycled Resin, Methane, Corn, Copper, Polymers, LNG, Cement, Aluminum, Steel, Fertilizer
Companies Mentioned:
LyondellBasell, Braskem, CP Chemical, Dow, ExxonMobil, Enterprise Products, Flint Hills, Nova Chemicals, Shell, TPC Group, Aramco, Phillips 66, Occidental, Freeport LNG, AOC, BASF, Clariant, Covestro, Huntsman, Daicel, Daiken, Trinseo, SABIC, Solvay, Livent, Nippon Shokubai, Nippon Soda, Indorama Ventures, Orion Eng. Carbons, Kumho Petrochemical, Sumitomo Seika, Teijin, Toyobo, Tosoh, Wacker, Henkel, Arkema, Westlake, Atotech, IMCD, PTT Global, Showa Denko, Sumitomo Bakelite, Polynt, Lotte Chemical, Kureha, Kansai Paint, Keyera, Cosmos Energy, Ecovyst, Easpring, Cabot, Eni, Osaka Soda, DR Horton, GE, Fortescue, Volvo, VW, Air Products, Air Liquide, Linde, Morningstar, Pinnacle Polymers, TotalEnergies, Reliance, Navigator Gas, Devon Energy, Maersk Drilling, Noble Corp., Idemitsu Kosan, Johnson Matthey, Kuraray, Lanxess, Northern PetroChem, Sika, Songwon, Brookfield, Inter Pipeline, CMI, ABC Technologies, PepsiCo, Unilever, Sinopec, Norsk Hydro, Plastic Energy, Baker Hughes, Toyota, Olin, Shintech, Formosa Plastics, DuPont, LG Chem, Hexion, Worley, Cheniere, Engie, Petronas, Satorp, Sappi, Idemitsu, Pioneer Natural Resources, Chemtrade, Johnson Matthey, Evonik, Milliken, Tomra, Quantafuel, Vopak, Stavrolen

C-MACC Sunday Thematic & Weekly Recap 92

Is Chemical Sector M&A Rising Because Its Approval Is Easier? 

  • Chemical sector M&A transactions are on the rise as corporates adjust portfolios to boost stakeholder appeal and equity values – we expect an active 2022.  
  • M&A is being driven by: valuation (absolute values & arbitrages), private equity capital availability, borrowing rates, and perhaps ease of approval vs alternatives.
  • Growth Capex decisions face obstacles – from ESG/emissions debates to feedstock concerns to demand. M&A is a more straightforward growth strategy.
  • We discuss falling (but still high) US polyolefin margins and the drag on commodity stock values. For now, the Industrial gas sub-sector has outperformed.
  • Otherwise, we also discuss COP26 shortfalls, energy market tightness, and the increasing ESG and climate change pressure that boards of directors face today.

Last week we discussed 26 Chemicals and related products and 109 Companies.

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