Global chemical mergers and acquisitions are expected to continue

In 2021, despite inflation, supply disruptions and geopolitical risks, this did not have a significant negative impact on the chemical M&A market that year

M&A fever is expected to continue

While inflation, tight supply and the Russian-Ukrainian conflict have added considerable uncertainty to the economic outlook, demand for chemicals remains high, market participants said

Sean Murray, managing director of Goldman Sachs, said that the chemical M&A market in 2022 is optimistic and will continue to be hot if compared to the data in the early days of the new crown pneumonia outbreak

Murray said that although the market is volatile in 2021, it has also brought huge profits to the chemical industry, and M&A valuations have also followed the global stock market to new highs

Economic uncertainty increases

It is undeniable that the current European geopolitical situation and macroeconomic situation will indeed cool down the M&A market

But the situation in Europe is more serious

European market cools

While M&A support conditions such as credit availability and cash reserves for private equity firms remain in place due to heightened economic uncertainty, M&A forecasting scenarios may be more difficult given cost inflation and higher geopolitical risks

　　The impact of the Russian-Ukrainian conflict, further disruptions to supply chains and continued rising energy prices have dampened expectations for demand growth

　　The Russian-Ukrainian conflict has had the greatest impact on the European chemical industry

　　Interest rates are also closely watched by practitioners