Deals Slump In Quarter

The level of merger and acquisition (M&A) activity slowed to a crawl in the second quarter, according to a new report from PricewaterhouseCoopers. During the quarter only 16 chemical transactions worth $50 million or more were announced, for a total of $2.8 billion worth of deals. The year-ago period saw 35 such transactions totaling $11.1 billion. Among the factors explaining the low figures, PwC consultants say, are the recessionary conditions in Europe. “The M&A environment is likely to remain constrained throughout 2013,” the analysts write. “However, there are expectations for renewed economic growth in 2014, particularly in the Euro­zone, which may drive improvement in deal activity the following year.” In recent weeks, signs of a coming rebound in activity have emerged, with major chemical firms such as DuPont, Dow Chemical, and Ashland disclosing their intention to divest major businesses.