As the business cycle is drawing closure to the vicinity of its climax many European chemical firms are focusing on purchasing assets of rivals businesses.
The big deals have often been driven by a need to move towards higher value addition ahead of a downturn.
Akzo Nobel, BASF, Bayer, Linde and Syngenta to name a few have already attained properties, aimed at getting a commanding position in their respective lucrative markets whereas some wanted to strengthen its business and some were through because of the imminent downswing.
According to an analyst Stephan Kippe, WestLB, “If chemical demand growth is at its ebb or below GDP growth in Europe, it doesn't make sense to expand your own capacities-it's better to buy capacities already on the market to take care of oversupply.”
marketing@alchempro.com
