Thailand reports surge in mergers over past 5-year frame
The Trade Competition Commission of Thailand (TCCT) recently released comprehensive data on business mergers that have taken place in the country from 2019 to 2023.
In a report posted on thansettakij.com news website, there have been 137 mergers within this timeframe, comprising 12 merger applications and 125 merger notifications.
The total value of these mergers is 4.27 trillion baht. Year-wise, the value was 660.89 billion baht in 2019, 485.54 billion baht in 2020, 2.06 trillion baht in 2021, 681.73 billion baht in 2022, and 377.46 billion baht as of September 2023.
Though 2023 has seen 65 mergers so far, 2022 witnessed 42 worth almost double the value in total, while 2021 surpassed both years with 32 mergers worth 2.06 trillion.
This difference has been primarily attributed to mergers between giants like CP Retail Development and Tesco Stores (Thailand) resulting in Lotus’s hypermarts valued at more than 338 billion baht.
Notably in 2023, there was only one competition-related merger, involving Bangchak Corporation Plc's energy business and Esso (Thailand) Plc, with a total value of over 55 billion baht. If combined, the value of these two businesses would be nearly 400 billion baht.
Meanwhile, the service sector had the highest share of mergers at 27.4%, followed by financial businesses at 22.95%, consumer products at 17.5%, technology at 6.23%, resources at 2.9%, agriculture and food at 1.38%, and real estate and construction at 0.26%.
These statistics underscore the ongoing trend of business mergers, reflecting the dynamic shifts in the Thai economy, heightened trade competition and the necessity for businesses to merge in order to bolster their competitiveness and sustainability.
