Chemical M&A Volume

Above is an update of the global M&A volume for the chemical industry. 2009 was a difficult year for transactions worldwide and as you can see the chemical industry was no exception. Deal volume fell back to levels comparable to the 2002 - 2003 time frame. In fact, Dow Chemical represented the majority of 2009 deal volume with its acquisition of Rohm & Haas and subsequent divestitures. BASF also rang in $5 billion in transaction value with its acquisition of Ciba Specialty Chemicals. We also saw a variety of take-privates as low trading values of several public companies made them attractive take-over targets. Commodity sectors saw a good amount of activity as strategics looked to consolidate on a global basis, survive and prepare for an economic recovery. Fertilizer and agrochemical industries also saw healthy activity as the sector is coming off a high-margin environment with strong balance sheets and will look to put their cash to use and expand globally.