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The new edition of our newsletter on transactions in the global chemicals industry glances back at the significant deals that took place in 2022 and provides further insights on the industry’s market trends.

M&A activity in the Chemicals sector saw a downturn in 2022. Energy crisis, coupled with a spike in interest rates deteriorated the deal making environment during the year.

Further, slowing demand and supply constraints impacted the sector hard. While recessionary risks and the slowdown in key end use industries, such as electronics and automotive impacted demand, on the other hand supply chain disruptions led to extended impact on the global chemical manufacturing operations.

In the short-term, while the sector is expected to continue to be impacted by disruptions in energy and raw materials, the industry will likely observe a positive uptick in the second half of 2023, driven by a stabilization in energy prices and the unwinding of supply chain constraints.

In addition, circular trends, and rising focus on ESG factors are expected to help the industry weather the challenging periods of economic activity globally.