Deutsche Bank: Chemicals Industry On Doorstep Of M&A ‘Bonanza’

In a new report, Deutsche Bank analyst Tim Jones discussed the firm’s recent week-long series of meetings with leading U.S. and European chemical companies in Houston. According to Jones, the chemical landscape is ripe for more M&A deals.

“In almost every meeting M&A was a key theme – we remain of the view that we are at the start of a North American M&A bonanza,” Jones explained.

He mentioned several drivers of this bonanza, including strong balance sheets, cheap financing and activist pressures. Jones expects that Europe will be more active in making U.S. acquisitions in coming months.

Catalysts For The Chemicals Bonanza

Deutsche Bank sees the U.S. Gulf Coast region as the top global investment region looking ahead. Jones expects China to be an important area of investment as well, but he believes that the U.S. Golf Coast will be as important for investment as the entire nation of China will be.

Despite the fact that the collapse in oil prices has flattened the cost curve, North American ethane based ethylene production still maintains…

Click here to continue reading

Want to learn more about how to profit off the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common SenseI don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and is always available on your local internet!