In New York, Chemical Compounds, a quarterly analysis of M&A activity in the global chemicals industry by PwC, is reporting that 32 deals took place during the second quarter of 2012, compared to 22 deals in the first quarter of 2012. However, the deal value during the second quarter of 2012 decreased to $11.8 billion from $13.5 billion in the prior quarter, due primarily to a decrease in mega deals (transactions worth more than $1 billion). Only two mega deals were recorded in the second quarter of 2012 with a value of $3.9 billion.
Asia & Oceania drove deal volume and value during the second quarter of 2012, and the 10 announced BRIC (Brazil, Russia India and China) transactions worth more than $50 million were for China-based targets and acquirers, including one of the two mega deals worth $2.8 billion.
Despite the decline in mega deals and overall value, EBITDA multiples improved during the second quarter of 2012. Healthcare-related deals helped contribute to the higher multiple. Deals have largely been by strategic investors, which contributed $11.1 billion of total deal value for transactions worth more than $50 million, compared to financial investors’ contribution of $700 million during the second quarter of 2012.