Chemical companies continue to realign around core activities, which further drives enterprise value

The trend in the chemical industry to enhance focus will continue and drive portfolio realignments and corporate divestitures.

We will also continue to see ongoing industry consolidation to leverage economies of scale. Fragmented segments of the industry such as  CASE and other low capital and scalable businesses will be particularly active. Not only strategic buyers are stepping up, but we also see financial buyers acquiring platform businesses and building size. Timing is good for privately owned enterprises to evaluate their strategy and the best way to unlock value.

Our Chemicals & Plastics comment can be downloaded here.