Deal value falls in 2017

The value of chemical mergers and acquisitions around the world fell by 66% in 2017 versus 2016 to $64 billion, according to an analysis by the advisory firm PwC. The company attributes the decline to a lull as executives and investors wait for two major transactions—Bayer’s acquisition of Monsanto and the Linde-Praxair merger—to be finalized. Deal volume was solid, PwC notes, up 6% from 2016 to 909 deals. Craig Kocak, U.S. chemical deals leader at PwC, says he anticipates continued transformation and realignment this year, in part as a result of divestitures that will be made to win regulatory approval for the incomplete megadeals. Other trends for 2018, Kocak adds, are a rising sense of nationalism that is spurring deals within country borders and the opportunity for investment in the U.S. because of tax reform and a weakening dollar.