Chemicals M&A Rebound Driven by Mega-Deals, Kearney Report Finds
Kearney's 2026 Chemicals M&A Report reveals an 18% surge in global deal value in 2025, largely due to four mega-transactions, while non-mega deals saw minimal growth. Executives anticipate selective M&A in 2026, driven by profitability pressures like overcapacity and weak demand, not financing. Companies are divesting non-core assets, and financial sponsors target underperforming firms. Regional M&A strategies are also diverging.
Kearney's 2026 Chemicals Executive M&A Report highlights a significant rebound in global deal value, surging 18% in 2025 to surpass the seven-year average. This increase was primarily propelled by four mega-transactions—Borealis-Borouge, AkzoNobel-Axalta, OMV/ADNOC's Nova Chemicals acquisition, and Berkshire Hathaway's OxyChem deal—which together accounted for 40% of total M&A activity. In contrast, non-mega deals experienced a modest 4% growth. Looking ahead to 2026, executives anticipate an active but selective M&A environment, driven by structural profitability pressures such as overcapacity, weak end-market demand, pricing erosion, and China's oversupply, rather than financing constraints. This outlook is prompting large corporations to accelerate divestments of non-core assets, while financial sponsors are targeting underperforming assets with clear operational improvement opportunities. The report also notes deepening regional divergence in M&A strategies: North America favors carve-outs with foreign strategic buyers, Europe sees restructuring and portfolio exits due to high costs, Asia remains domestically led amid oversupply, and the Middle East emerges as a significant source of capital and a market for carve-outs. Additionally, the article briefly mentions the Together for Sustainability (TfS) initiative, the CHEManager Innovation Pitch platform, new Brenntag CEO Jens Birgersson, calls from Ineos CEO to save the European chemical industry, the German Chemical Industry Association welcoming averted trade war danger, and Novo Nordisk's workforce reduction for reinvestment.
