Post Dow-DuPont, chemical deal-making waned as 2016 advanced
A few big chemical deals were inked during the year, but it was hardly the frenzy observers were expecting
After Dow Chemical and DuPont announced plans to merge in late 2015, chemical industry watchers predicted that the year ahead would bring an unprecedented blizzard of deal-making.
Speaking before the IHS World Petrochemical Conference in March, Scott Kleinman, lead partner for private equity at Apollo Global Management, was certain that big companies would keep buying each other.
“I think you are going to see deals you thought would never happen happen this year,” Kleinman concluded.
However, by the third quarter, merger and acquisition activity had cooled. According to the consulting firm PricewaterhouseCoopers (PwC), 23 transactions were announced in the chemical industry during the July–September quarter, a decline of 47% versus the quarter before.