Market Outlook: How Mega-Deals Miss Their Targets

Published on January 19, 2023

The chemicals industry has recently seen a boom in mega-deals – all with the goal to grow the top line. However, after a mega-deal is closed, most giants fall back to cost-cutting initiatives. This is a lost opportunity, considering better pricing not only helps to grow the top line but is also the bigger profit driver.

Merger and acquisition activity in the global chemical industry has skyrocketed in the last year, with one record-breaking mega-merger after another drawing international attention. Dow merging with DuPont, China Chem’s acquisition of Syngenta and Evonik’s purchase of an Air Products division, are just a few high-profile deals that have created giants in the chemicals industry.

There are a couple of significant reasons for this deal-making frenzy. First, there is a lack of alternative growth opportunities, as most players operate in mature and concentrated markets and the…

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