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Chemical Industry Braces for More M&A in 2025

European companies are in the spotlight as the chemical industry braces for more M&A in 2025. Despite market challenges, deal activity is expected to continue, with companies using mergers to adapt and strengthen their position.

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Chemical Industry Braces for More M&A in 2025

The chemical industry is set for continued consolidation, with mergers and acquisitions (M&A) driving the trend. This is particularly true in segments facing margin pressure and long-term trends like sustainability and innovation. European companies are likely targets in 2025, with investors and sellers active in the stock market today.

Notable companies mentioned in the context of M&A include ADNOC, Covestro, Dow, Heubach, LyondellBasell, and SABIC. Private equity is also active, with financial sponsors having 'dry powder' ready for investment. The bid-ask spread is widening, reflecting stock market history. Despite challenges like tariffs, high energy costs, and geopolitical uncertainty, deal activity is expected to continue. M&A allows companies to adapt to challenges, leverage synergies, and strengthen their market position. The DCAT (Drug, Chemical & Associated Technologies Association) is a relevant organization in this context.

The chemical industry's future is marked by consolidation, with M&A as a key driver. European companies are prime targets, and despite stock market history, deal activity is expected to persist. Companies are using M&A to adapt, leverage synergies, and bolster their market position.

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