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Chemical M&A in 2010 Totals $27.6 Billion So Far; Gathering Pace

The value of large mergers and acquisitions in the chemical industry has increased to $27.6 billion so far this year, beating the tally for the whole of 2009, PricewaterhouseCoopers said in a report today.

The rise in deal volume can be attributed to improving economies, increased profitability within the chemical industry and appetite among companies to grow businesses, PwC said in a report.

M&A in the chemicals industry is trending back toward larger deals, according to PwC. The average deal size in the third quarter rose to $90 million, compared with $82 million in 2009, it said.

“As we go forward and the deal market strengthens, the growing number of companies searching for good acquisition candidates may present a challenge,” said Tracey Stover, global chemicals leader for PwC.

To contact the editor responsible for this story: Andrew Noel at anoel@bloomberg.net

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