Issue 11 2020

32 Acquisition International - Issue 11 2020 The third quarter of 2020 was a fairly quiet one in terms of the volume of deals targeting companies in the chemicals industry, according to Zephyr, the M&A database published by Bureau van Dijk. By contrast, value was at its highest level of the year to date. In all, there were 433 deals worth a combined USD 29,515 million signed off over the course of the three months. 3 2020’s volume marks the lowest result to have been recorded since the third quarter of 2018, while value is the highest since Q4 2019. Value has been boosted considerably by a small number of deals. In fact, the most valuable transaction to have been announced during 2020 to date was signed off in Q3. That deal was valued at USD 9,926 million and involved the purchase of multiple assets as Nippon Paint Holdings signed on the dotted line to pick up the remaining stakes in a number of Asian joint ventures which it operates with Nipsea Holdings International, Nipsea and Wuthelam Holdings. This deal alone accounted for 34 per cent of Q3 2020’s total value and is worth more than double the value of the second-largest deal of the year to date. Interestingly, Nippon Paint Holdings was also the acquiror in the quarter’s second-largest deal, and the sixth-largest of 2020 overall, as it agreed to purchase Hong Kong-based paint maker Neave for USD 2,227 million. The Far East and Central Asia was the most frequently targeted region during the third quarter, with 254 deals. It was followed by Western Europe and North America, with 89 and 49 deals, respectively. The Far East and Central Asia also led the way by value, with USD 20,182 million, undoubtedly boosted by the aforementioned purchase of Nippon Paint’s Asian joint venture stakes for USD 9,926 million. Western Europe again placed second, with USD 4,438 million, followed by North America (USD 2,086 million). So far, the fourth quarter of 2020 has been relatively quiet in terms of deals targeting the sector, with 99 transactions worth an aggregate USD 2,341 million having been announced globally since the beginning of October. The largest deal to have been announced in the sector in Q4 to date is valued at USD 589 million, making it 2020’s 21st-largest chemicals deal so far. The transaction saw Syngenta Crop Protection acquire Italian fertiliser and botanical products maker Valagro and accounts for 25 per cent of total value for the quarter so far. If dealmaking continues at this rate for the rest of the year, activity would be on a par with the opening three months of 2013, when 305 deals worth a combined USD 6,444 million were announced. However, we could see an upturn in the coming months as dealmakers look to tie up additional transactions before the end of the year. Company: Bureau van Dijk E-Mail: bvd@bvdinfo.com Web: www.bvdinfo.com Chemicals Q