Asia will become a place of frequent chemical mergers and acquisitions in the future
as the current global chemical market has matured in the United States and Europe, western manufacturers have begun to enter the Asian market to consolidate their position, and some Asian companies have also had strong competitive strength. After investigating and analyzing 329 publicly traded chemical companies, celerant, the world's leading management consulting company, predicts that chemical M & A activities in the next 10 years will mainly occur in Asia, and manufacturers from all over the world are targeting this cake
in recent years, chemical companies in Europe and North America have experienced long-term growth driven by strong demand and prices. However, it is not easy to find growth opportunities in these two mature markets, and the growth that can be obtained through M & A is also very limited
former president of Celanese chemical company Collinden, the current consultant of celerant, said: "In the 1980s, selling chemicals made in the west to the rapidly growing Asian market was an opportunity that everyone was eager to seize. In the 1990s, the focus changed to obtaining basic chemicals and intermediates from the Asian market for production in the western world. At the beginning of the 21st century, Western participants began to invest a lot of money in the Asian market, establish production facilities in Asia, and ship products to all parts of the world." In the coming stage, he believes that both Western and Asian local producers will compete to expand their strength in the Asian market and become truly global integrated producers
the M & a situation in Asia has just opened.
celerant believes that the M & a situation in Asia is just 6. Before loading, check whether the loading handle is opened in the unloading position
in the past 10 years, 93% of the global mergers and acquisitions took place in Europe and the United States, and Asia accounted for only 6.7% of the global total in the past five years, all of which are about to change. Glenn Robinson of celerant UK explained that in terms of market value, the Asian market is highly fragmented and is still dominated by relatively small companies. Celerant recently surveyed 329 publicly traded chemical companies, including 215 in Asia, 61 in the United States and 53 in Europe. The survey shows that the total market value of the companies in these three regions is close to US $280billion to US $300billion, but the average market value is very different. The average market value of the companies in Asia is only US $1.23 billion, while that in the United States is US $5.06 billion and that in Europe is US $5.88 billion. Therefore, from this point of view alone, companies in Asia are very attractive acquisition targets. Especially in the current economic environment, the growth rate of Asian economy and market is higher than that of the United States and Europe
Robinson added that whether Western companies want to increase their market share in Asia to seek growth, or large Asian companies want to consolidate their position in China, the Asian market will be a very attractive target
celerant believes that the focus on the Asian market is of great significance to most companies, but it also means more complex and unique challenges. For western competitors, the challenge is whether M & A activities can increase their long-term profitability
there must be "three axes" to participate in M & A.
Robinson said that compared with peers, the most powerful companies to participate in M & A in Asia must have three advantages: premium stocks, higher operational efficiency and stronger financial capacity. Such companies certainly exist in Asia, but they are few
celerant verified the above situation by collecting and analyzing various indicators of the investigated chemical companies. The survey shows that the valuation of Asian chemical companies is 30% ~ 40% higher than that of their counterparts in the United States and Europe. For example, Asian companies have advantages in average p/E ratio, total economic value and profit before interest, tax, depreciation and amortization (EBITDA), but almost all operating indicators have poor performance
Robinson believes that there is no doubt about the M & a strength of European and North American companies, but he does not deny that Asian companies also have the advantages of cultural consistency and high-quality stock value, which can be used for leveraged buyouts. In addition, with the slowdown of global market growth, Asian companies' focus will shift from growth to improving internal operation efficiency and scale, which will also become the driver of mergers and acquisitions
according to the survey and research, about 20 potential acquirers in Asia basically have the advantages of the above three main current projects. They represent 9.3% of the Asian market, including the first companies in Japan, China, South Korea, India and Thailand. In addition, Russia and the Middle East also have several powerful competitors coveting this market. In the next 10 years, mergers and acquisitions in the Asian chemical industry will occur frequently, because global manufacturers want to share in this rapidly expanding market
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