Mergers & Acquisitions in Thailand

Mergers & Acquisitions in Thailand. The landscape of mergers and acquisitions (M&A) in Thailand is experiencing a surge in activity. Fueled by a strong start to 2024 and an overall increase in 2023, M&A is becoming a popular tool for businesses to achieve growth and expand their reach.

Key Trends:

Increased Deal Value: The first quarter of 2024 saw a significant rise in transaction values compared to the previous quarter, even with a slight dip in deal numbers [source: Mahanakorn Partners].
Active Sectors: Financial services, healthcare & life sciences, and consumer & retail are leading the charge in M&A activity [source: Mahanakorn Partners]. Notable examples include SCB’s acquisition in Vietnam and PTT’s divestment in Malta [source: Mahanakorn Partners].
Shifting Strategies: While cross-border acquisitions were prominent pre-pandemic, domestic M&A, particularly among smaller private companies, is thriving due to easier accessibility [source: Law.asia].

M&A Structures in Thailand:

Thai law offers a few different structures for M&A transactions:

Share Acquisition: The most common method involves acquiring shares of the target company [source: Baker McKenzie].
Business Transfer: This approach involves transferring the entire business of the target company [source: Chandler MHM].
Amalgamation: Two companies can merge to form a completely new entity [source: Chandler MHM].
Merger (New Concept): A recent amendment to the Thai Civil and Commercial Code introduced the concept of a merger, where one company absorbs another to become the surviving entity [source: Baker McKenzie].

Looking Ahead:

The M&A scene in Thailand is expected to remain active, driven by factors like:

A robust domestic economy
Strategic expansion plans of Thai companies
Continued interest from foreign investors

With a growing emphasis on sectors like technology and e-commerce, M&A activity is poised to play a crucial role in shaping Thailand’s future business landscape.