Branching Out, PwC’s first annual report into the sector, found that deal values increased by nearly US$80m between 2003-2006, a figure which could increase further in 2007.
Nearly a third of forest, paper and packaging chief executives have told PwC that they are planning cross-border mergers or acquisitions this year, with first quarter deals valuing US$9bn surpassing the figure for the same period in 2006.
“Looking ahead, the fundamentals for deal activity in the forestry, paper and packaging industry remain strong, with a sound economic environment, low interest rates and plenty of liquidity, most notably with private equity,” said Clive Suckling, PwC global forest, paper and packaging director.
Emerging markets in Brazil, China, India, Malaysia, Mexico, Poland and Russia are becoming hotbeds of forest, paper and packaging mergers and acquisitions, according to the PwC report.
