The chemical industry has experienced significant mergers and acquisitions (M&A) activities in recent months, reflecting strategic shifts and market dynamics.
Adnoc’s Acquisition of Covestro
In October 2024, the Abu Dhabi National Oil Company (Adnoc) announced a €14.7 billion ($15.9 billion) offer to acquire German chemical giant Covestro. This deal, marking the largest cash transaction in the chemical sector, aims to strengthen Adnoc’s position in the global chemicals market. The acquisition is expected to close in the first half of 2025.
Amcor’s Merger with Berry Global
Australian packaging company Amcor has entered into a scrip merger agreement valued at approximately $8.4 billion to acquire Berry Global Group. This merger positions Amcor as the largest plastic packaging company globally, with the combined entity projected to achieve annual sales of $23.9 billion. The deal is anticipated to enhance operational efficiencies and market reach.
CSG’s Acquisition of IFF’s Nitrocellulose Business
In October 2024, Czech defense and industrial firm Czechoslovak Group (CSG) announced plans to acquire International Flavors & Fragrances’ (IFF) nitrocellulose business in Germany. This acquisition aligns with CSG’s strategy to expand its defense-related chemical operations, with the deal expected to close in the first half of 2025.
German M&A Activity
Germany has witnessed a resurgence in M&A activities, with the total value of domestic deals reaching approximately $106 billion in the first ten months of 2024. Major transactions include Deutsche Bahn’s sale of its Schenker logistics arm for $15 billion and Adnoc’s acquisition of Covestro. This uptick is attributed to strategic restructuring efforts by German industries to adapt to changing economic conditions.
These developments underscore a period of significant consolidation and strategic realignment within the chemical industry, driven by companies seeking to enhance their market positions and operational efficiencies.
