The chemical energy sector witnessed mergers and acquisitions worth USD 41 billion in the January-March quarter of 2011,with the Asia-Pacific region accounting for USD 11 billion of the total value,says global consultancy firm PwC. It said the chemical industry across the globe will continue to see a high level of deal activity in the remaining months of 2011 as well. According to a report by PwC,there were a total of 31 transactions worth over USD 50 million during the quarter,adding up to a cumulative of USD 41 billion in the first quarter of 2011,compared to 21 deals totaling USD 23 billion in the year-ago period. This represents a 48 per cent increase in the volume and 78 per cent jump in the value of M&A deals in the chemical energy sector. "The higher level of deal activity can be attributed to stronger balance sheets,healthier margins and positive forecasts from a range of businesses across the globe," PwC Global Chemicals Leader Tracey Stover said. Stover further said,"As the global economy and fundamental demand for chemicals continues,we expect a high level of deal activity will continue,making 2011 a very strong year for M&A in the global chemicals industry." Geographically,North America led first quarter deal activity in terms of value with 12 transactions worth USD 50 million or more,totalling USD 21.1 billion. The Asia-Pacific region led in terms of volume,with 17 deals worth USD 10.6 billion. The report did not provide any specific data on India. China showed strong activity,with about USD 6 billion in deals of all sizes,including USD 3.8 billion worth of outbound deals and USD 1.9 billion in local deals. "China,as well as emerging market deal-makers,are expected to play an even greater role in activity this year,which could significantly increase the level of competitive bidding," Stover added.
