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Partner, Deal Advisory - Valuation
KPMG AG Wirtschaftsprüfungsgesellschaft
Preview of the KPMG Deal Capsule Chemicals Newsletter
The new edition of our newsletter on transactions in the global chemicals industry, glances back at the significant deals that took place in Q1 2022 and comes in a refocused shape.
Following a strong rebound in M&A activity in 2021, deal outlook appears bleak in H1 2022, as the sector struggles in light of the Ukraine-Russia war.
- Being energy intensive, the chemicals industry was severely impacted owing to steep rise in gas and crude oil prices. The European chemicals industry, in particular, was the most affected due to high dependence on Russia for oil and gas.
- Several large players signaled reduction in outputs due to energy supply disruption on account of sanctions on Russia. Facing heightened uncertainty and increased volatility, the M&A deal landscape is also feeling the heat.
- In this issue we also look at how ESG impacts M&A activities in the chemicals space, a topic which the Ukraine-Russia war has turned the spotlight on.