M&A Trends in Thailand | Q2/2022

Despite global economic concerns, Q2 M&A activities in Thailand saw an increase in terms of value and volume from the previous quarter, with 56 deals valued at USD 1.9 billion.

The Bank of Thailand forecasts GDP growth at 3.3% this year given the expectations of a rise in both the tourism and services sector, together with stronger domestic demand. These factors may be challenged by rising inflation for both consumers and producers, and continued supply chain disruptions impacting the manufacturing and export economy.

From an M&A perspective, deal makers continue to closely monitor the interest rate environment and the Thai baht’s performance, which has implications on valuations, access to cheaper capital and foreign exchange exposures. The Industrial Manufacturing, Financial Services and Healthcare & Lifesciences sectors accounted for 73% of total Q2 2022 deal value. M&A activity in the Financial Services sector continues, with a notable transaction this quarter being Bank of Ayudhya’s buyout of Nomura Securities’ for USD 155 million. A notable deal in the Consumer & Retail sector was K-nex  Corporation’s (Otteri) fundraising with PTT OR as part of its growth journey, a deal for which KPMG was exclusively retained as the lead sell-side M&A advisor. A deal KPMG also assisted on was Beryl 8 Plus PCL’s buyout of Extend IT Resource Co., Ltd. (X10) to build on its existing technical and human resource capabilities to drive digital transformation for its clients. KPMG also supported PTT Group with its acquisition of Namwiwat Engineering (1992), to strengthen its Healthcare and Lifesciences division.

Major M&A themes, such as portfolio calibration and enhancement, transformation and seeking economies of scale, will continue to dominate the M&A landscape in the second half of this year as investors look to strengthen their competitive positions and find new avenues of growth.

• Value data provided in the various charts represent the aggregate value of the deals for which a value was stated. Please note that values are disclosed for approximately 50% of all deals
• Deals are included where a stake of 30% or more has been acquired in the target. If the stake acquired is less than 30% then the deal is included if the value is equal to or exceeds the equivalent of USD 100 million
• All deals included have been announced but may not necessarily have closed
• Activities excluded from the data include restructurings where ultimate shareholders’ interests are not affected

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