It has also contributed to a frenzy of mergers and acquisition activity in the industry. Earlier this year, ChemChina agreed to buy Syngenta in a $43bn deal. And in another sign of the eat-or-be-eaten climate of the industry, this year Monsanto attempted and then ditched its own attempt at an acquisition, and has now become the target of a possible takeover by Bayer and BASF.

What's behind the flurry of M&A activity?

Mike Shannon, Global Chair of Chemicals & Performance Technologies at KPMG, says he and his colleagues have been forecasting amped up M&As in the industry for about three years. But it took a few major shifts in the market for the predictions to come true.

There are several factors driving chemical companies to match up.

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