Subscribe to KPMG's 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 2025 and provides further insights on the industry’s market trends.

• Deal volume: In the first quarter of 2025, chemicals sector reported a 15% increase in deal volume and a remarkable 241% rise in deal value compared to the same period in 2024.
• Transformation: This growth was fueled by lower borrowing costs, heightened demand for capital returns by limited partners (LPs), consolidation activities in China, and restructuring efforts within commodity chemical companies. A growing emphasis on transformation through next-generation technologies also played a crucial role.
• Deal value: There was a significant increase in high-value transactions during the quarter, with six deals surpassing US$1 bn. This is notably higher compared to none in the same period in 2024.
• M&A focus: The quarter was mainly dominated by strategic deals, which comprised over half of the transactions owing to the continued focus on portfolio optimization through carve-outs and reorganizations, targeting more resilient, rapidly growing, or higher-margin segments.
• M&A driver: Newly imposed US tariffs and ongoing supply chain challenges have prompted companies to acquire local assets. Consequently, domestic transactions made up 71% of the total deals.