Private Companies Play Leading Roles in Asia to Become a New Battleground—Multinational Companies in 2005 Accelerate Business Integration
The statistics of the New York-based investment banking company (Y&P) showed that mergers and acquisitions in globalized industries were relatively normal in the first three quarters of last year. During this period, total transactions were completed at approximately US$19 billion, with an average transaction value of more than US$25 million. The total transaction volume for the same period of the year was US$20 billion, but the number of transactions last year fell by 9% from the previous year to 52. Y&P pointed out that global industrial M&A activity will remain at a normal level and it is estimated that the volume of M&A transactions completed last year will increase slightly from the previous year to a level of approximately US$34 billion.
Private investment companies become protagonists Looking back at the global chemical M&A market in 2005, private investment companies continue to take the lead. US Access Industry Corporation spent US$5.4 billion in August 2005 to complete the acquisition of Basel, the world’s largest producer of polypropylene and advanced polyolefins; Apollo Asset Management acquired Merit Products and Bourdon Chemical, among others , Formed the world's largest thermosetting plastics manufacturer Hexion Specialty Chemicals.
The second largest private company in the United States, Cork Industrial Corp., said recently that the company has agreed to purchase George Pacific, the world’s largest maker of branded paper and forest products, for US$21 billion. George Pacific’s chemical business is a global wood adhesive resin. , a leading supplier of thermosetting resins, formaldehyde, paper chemicals and tall oil chemicals, achieved sales revenue of $588 million in 2004.
Multinationals Accelerate Business Integration BP, the world's third-largest petroleum company, has already sold its derivatives such as Innovene, a derivative of its refining and olefins, to Ineos, the UK’s largest specialty chemical manufacturer, for US$9 billion; BASF recently acquired the electronic chemicals business of Germany's Merck AG for 270 million euros. After the acquisition, BASF will become the world’s most important electronic chemical for the semiconductor and flat panel display industries. The suppliers, while significantly enhancing BASF's market position in Europe and Asia.
Sasol, South Africa, is considering selling its olefins and surfactants business with sales revenue of US$2.6 billion per year. Sarsol's olefins and surfactants business includes surfactants, surfactant intermediates, ethanol, a US ethylene unit, comonomer and aluminum-based inorganic specialty chemicals business. The business achieved sales revenue of US$2.63 billion in 2004, accounting for approximately 28% of Sasol’s total sales revenue.
Specialized commodity business highlights business priorities In March 2005, Compton of the United States purchased Dahu Chemical Co., Ltd. for US$1.8 billion, and established Chemtura, the third largest public specialty chemical company in the United States. The sales revenue of the new company exceeded 4.1 billion yuan. Dollars. The company has a leading position in the field of high value-added specialty chemicals including plastic additives, petroleum additives, flame retardants and water treatment chemicals.
Cytec Chemicals USA completed the acquisition of UCB's specialty surface chemicals business for US$1.8 billion. Cytec will become one of the world's leading suppliers of specialty chemicals for the coatings industry, earning approximately $3 billion annually. Finland Kemira invested about 640 million U.S. dollars in the purchase of pulp and paper chemicals producers Finnish Chemicals and Dutch Verdugt. Dutch DSM acquired Avecia’s NeoResins coating resin business for US$670 million.
Asian companies in a global setting Indonesian Indorama Group won the acquisition of Nigeria’s state-owned Eleme Petrochemical Company for approximately US$216 million, and Indorama will purchase a 75% stake held by the Nigerian government in the petrochemical company. Eleme Petrochemicals is a subsidiary of Nigerian National Petroleum Corporation. Founded in 1995, Eleme Petrochemical Company has the largest olefin plant in Africa. Japan's Asahi Kasei Corporation has stated that it plans to acquire Dorsett's Dorlastan spandex business.
China Bluestar Group acquired Adisseo, a French feed additives manufacturer, from British CVC Investment Partners. The company's business mainly involves enzymes, methionine and vitamins, with annual sales of 500 million euros. Bluestar is a subsidiary of China National Chemical Corporation. The acquisition of Adisseo is the first international acquisition of the group company.
Cross-border mergers and acquisitions reach out to Asia The world's leading catalyst manufacturer Engehard, in May last year, acquired Sinopec's Nanjing Chemical Industry Company's syngas catalyst business. The acquired business involves the company's synthetic (coal) gas business, catalyst technology, and assets located at the Nanjing production base. The company is a leading producer of synthetic (coal) gas catalysts in China, and is a leader in the development of synthetic catalysts for coal (coal) gas in China and even in the world.
Solvay Belgium acquired polymer business from India's Gharda Chemicals Corp., demonstrating Solvay's strategy to build a global high-performance polymer business framework is advancing, while also complying with the company’s establishment of a base in Asia and strengthening its high- Two strategic goals in the field of professional chemicals.