Publications

The weight of the auto industry continues to have an adverse effect on the chemical sector overall.

Navigating through a challenging economic climate: A special issue on market volatility and M&A in the global chemicals industry.

This study took 46 of the leading global chemical companies from the fine, basic, bulk, specialty, and petrochemicals sectors. This report summarizes the findings from benchmarking key financial indicators for tax for the past three years. All information is taken from publicly available financial statements spanning the period from January 2005 to December 2007.

We are delighted to present the chemicals industry sector supplement to our 2007 Global economic crime survey: Economic crime: People, culture & controls. This supplement is part of a new feature of this year's survey—where we examine data from six different industry sectors and compare and contrast their industry executive views with those of executives across all industries (as well as, where possible, with the respective executives interviewed in our 2005 survey). There are some very interesting stories to tell in many sectors!

The rise of China is sending ripples through the global chemical industry. While it still represents only a small share of the global chemicals market, its climbing rates of chemical importation and consumption, combined with its rapidly growing economy, expanding middle class, and inland urbanization, make China a market no international chemical company can afford to ignore.

China is one of the world’s export powerhouses. Trade with the US continues to grow at double-digit rates, topping $300 billion in 2007. Germany, the Netherlands and the UK also made the list of China’s top ten export destinations in 2007, with annual exports surging over 20% in Germany and over 30% in both the UK and the Netherlands. Most of these imports are motivated by anticipated cost benefits compared to procurement locally. But just how economical is the procurement of goods and products in China in real terms, once companies take into consideration related costs and increased risks?

2008 deal activity remains robust despite economic uncertainty. Deal activity remains robust despite a challenging economic climate and will fall within the ranges seen since 1998 and above the 2002 low point (see the 10-year M&A History chart on page 3). Deal activity in 2008 reveals that some chemical companies are continuing to aggressively pursue transformational deals to drive long-term strategic growth objectives, as well as mid-sized tactical deals to help them achieve their short-term business needs.

Small-deal activity continues to drive healthy deal volume in the global chemicals industry with 374 announced deals in the first half of 2008. Deal value continues to be impacted by economic volatility, with large deals continuing to lag behind the prior year. While growth in deal volume almost doubled since the first quarter, average deal value declined to $340 million compared with approximately $545 million in Q1. There were no large deals (worth more than $1 billion) announced this quarter, indicating that the industry is delaying large investments and focusing on smaller transactions. However, this is predicted to be a short-term trend as several deal announcements made less than two weeks into the third quarter will likely impact 2008 year-end levels.

Small-deal activity continues to drive healthy deal volume in the global chemicals industry with 374 announced deals in the first half of 2008. Deal value continues to be impacted by economic volatility, with large deals continuing to lag behind the prior year. While growth in deal volume almost doubled since the first quarter, average deal value declined to $340 million compared with approximately $545 million in Q1. There were no large deals (worth more than $1 billion) announced this quarter, indicating that the industry is delaying large investments and focusing on smaller transactions. However, this is predicted to be a short-term trend as several deal announcements made less than two weeks into the third quarter will likely impact 2008 year-end levels.

Despite a November 30 deadline for taking steps to comply, PricewaterhouseCoopers’ survey shows awareness of REACH is low, especially outside Europe and the chemicals industry. Failure to meet the terms of this European regulation could lead to a ban on exports to the EU and is a growing concern to EU-based companies.

An analysis of global chemical transactions January 2006 through September 2007. Deal volume (by number of announced deals > $50 million) was been consistently high through the first three quarters of 2007.

This report summarizes the findings from benchmarking key financial indicators for tax for the last 3 years. All information is taken from publicly available financial statements spanning the period January 2003 to September 2006.

This report provides step-by-step guidance on how to develop an effective antifraud program that addresses not only financial statement risk, but equally important reputation, operational, legal and strategic risks.