UPDATE: Chain Of Chemical Mergers Likely To Set Off Even More

July 24 - Dow Jones - The rapid pace of acquisitions recently in the typically humdrum chemicals sector has ratcheted up expectations that more are coming, as makers of the building blocks for a slew of household products seek to expand their global reach.

"We expect more consolidation," said Matt Hekman, analyst for Overland Park, Kans.-based investment adviser Waddell & Reed.

"International companies are looking to establish a presence here, and domestic companies are looking to establish, mostly via joint ventures, presences in countries with lower-cost feedstocks, like the Mideast," he said.

Considered as likely targets, say analysts, are bulk chemicals producer Nova Chemicals Corp., as well as companies in the fragmented coatings, or paint-parts, sector and manufacturers of industrial gases. Read More.