Different M&A activity levels are predicted for the different regions. More than 90 percent of respondents anticipate a continuous consolidation of the highly fragmented Asian markets to drive activity in China, India, and the rest of Asia. In contrast, the outlook for Europe is mixed, with almost 70 percent of executives naming economic uncertainty and the economic crisis in Europe as impediments, and 57 percent considering access to low-cost feedstock in the U.S., Canada, and Mexico as a driver of M&A activity in 2013.
Executives expect strong growth in alternative collaboration structures, driven by feedstock, market, and technology access. More than 50 percent of respondents expect growth in equity and contractual collaborations, such as joint ventures, long-term supply agreements, and strategic alliances. Access to feedstock, markets, and technology could be driving new partnership models in three key areas: (1) green-field type chemical investments in new regions leveraging alternative feedstocks, (2) combining access to classic feedstock with technology know-how, and (3) combining access to classic feedstock with market access.
For the full details of this report from A.T. Kearney, visit www.atkearney.com.