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Introduction

The newly unveiled Kearney Chemicals Executive M&A Report for 2026 signifies an intriguing chapter in the realm of mergers and acquisitions within the chemicals sector. The report outlines a period of reclaimed momentum, characterized by an overall 18% surge in global deal value compared to the previous year. However, alongside this growth, a complex and uneven reality unfurls, revealing a market shaped by a few pivotal deals rather than a comprehensive revival.

Key Findings

The highlight of the report is the identification of four major transactions that dramatically impacted the overall M&A landscape. These mega-deals accounted for an astonishing 40% of total M&A value in 2025. The specific transactions include:
1. Borealis–Borouge
2. AkzoNobel–Axalta
3. OMV and ADNOC's acquisition of NOVA Chemicals
4. Berkshire Hathaway's acquisition of OxyChem

While the overall deal activity remained relatively stable except for this handful of significant transactions, the insights reveal a shift in strategic focus. As noted by Andrea Menegazzo, a Kearney partner, these M&A activities are less about pursuing growth and more about rectifying chemical portfolios that are under pressure.

Regional Insights

The report dissects the performance of different regions in the chemicals M&A landscape:

• - North America emerged with a deal value that climbed by 9% to $51.5 billion. Here, the financial-sponsor deal activity surged to $12 billion, while strategic deal value saw a decline to $40 billion.
• - Europe demonstrated a 14% improvement, with total deal value reaching $38.8 billion. Financial sponsors invested $22 billion, while strategic deals accounted for $17 billion.
• - Asia, primarily led by domestic consolidations, displayed a 16% increase in total deal value to reach $34 billion. Of note, financial-sponsor activity rose to $11 billion and strategic value was $23 billion.
• - The Middle East demonstrated a noteworthy resurgence, with total M&A value soaring to $9 billion from just $3 billion in 2024, showcasing a renewed appetite for investment driven by strategic deals.

Challenges Ahead

While the increase in deal activity might seem promising, the outlook for 2026 indicates cautiousness among industry leaders. The findings underscore that 84% of executives see pricing and mix improvements as primary drivers of value, a shift from previous years where cost synergies were deemed essential. The persistent headwinds from tariffs and supply chain disruptions, cited by 76% of executives, are reshaping strategies. Companies are now compelled to address these issues through proactive measures in pricing and cost management rather than relying solely on merger volume.

The Path Forward

Looking ahead, Kearney anticipates a selective and active approach to M&A in 2026, rejecting hyper-growth aspirations in favor of operational change and complex deal management. The companies that will succeed are those with the foresight to consider mega-deals as strategic signals and to establish discipline in navigating the myriad complexities associated with mergers. The ability to effectively separate, stabilize, and enhance assets while aligning with the long-term goals of Middle Eastern capital investments will define the winners in this space.

For further insights and detailed findings, readers can access the comprehensive 2026 Chemicals Executive M&A Report.

About Kearney

Kearney, a pioneering management consulting firm for a century, partners with a significant portion of the Fortune Global 500 and global governments. The firm's commitment to impactful results rests on the innovative thinking of its seasoned consultants across thereby delivering tangible value.

For more information about Kearney, visit their website.