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Finally, several acquisitions (Bayer/Monsanto, PPG/Akzo Nobel, Sherwin Williams/Valspar) were at least in part aided by the low cost of debt financing available in the capital markets.Impact of Industry Consolidation We believe our current holdings are well-positioned to benefit from industry consolidation in the chemicals sector. (AXTA) has already been a direct beneficiary of the Valspar/Sherwin Williams transaction, acquiring Valspar’s attractive North American industrial wood coatings business at a reasonable price in order for the merger to pass antitrust review."So in this regard, it is a great thing for the industry and for the country in the long run," he said."News of tougher regulations pushed up share prices of major chemical companies, as investors bet that closures of smaller companies will boost operations of those at larger scale.Trading of shares of more than 50 companies was suspended on Monday after gaining the daily limit of 10 percent.These key markets were partially offset by increases in India, the Netherlands, Japan, and Brazil.Dense smoke rises from the plant of Jiangsu Tianjiayi Chemical Co on March 22 after an explosion in Xiangshui County, Yancheng city, East China's Jiangsu Province.As I mentioned in my February 2016 Industry Perspective, Axalta generally competes in consolidated industries where leaders such as Sherwin Williams and PPG have historically acted rationally from a pricing standpoint.
And while it could be an attractive acquisition target, we own Axalta because it trades at a discount to what we believe the business is worth on a standalone basis. (PX) has signed a definitive agreement to merge with German company Linde AG in a billion transaction expected to close in late 2018, which will create the largest industrial gas supplier in the world.The Jiangsu provincial government plans to shut down as many as 30 industrial parks that house chemical plants and close thousands of companies, according to media reports.Jiangsu is one of the largest bases for chemical industries in China.Through careful, consistent observation of the businesses we follow and the environments in which they compete, the Diamond Hill research team strives to build a cumulative knowledge base over time.
This knowledge, coupled with our intrinsic value philosophy, enables us to uncover attractive investment opportunities.
Global M&A volume in 2018 declined by 5 percent compared to 2017, but remained robust and were higher than every year from 2012 to 2015.