The third quarter of 2024 saw a remarkable surge in Thailand’s mergers and acquisitions (M&A) activity, reflecting growing investor confidence.
Key takeaways
- Thailand’s Q3 2024 M&A activity saw deal value skyrocket from USD 1.7 billion to USD 8.4 billion, driven by a USD 6.7 billion domestic megadeal, alongside a 72.7% increase in deal volume.
- Telecom, media, and technology led with nine deals, contributing 83.2% of the total deal value. This highlights the strategic focus on high-growth industries despite a drop in average deal size.
- Amid tightened credit conditions, Thailand maintained robust export growth (+11.4% YoY) and strong multinational investments, signaling continued M&A momentum in Q4 2024.
The total deal value soared from USD 1.7 billion in Q2 to USD 8.4 billion, driven by a USD 6.7 billion domestic megadeal. Deal volume also surged 72.7%, rising from 44 to 76 transactions.
Excluding the megadeal, the average deal size declined by 35.7%, dropping from USD 39.15 million in Q2 to USD 25.19 million in Q3.
Of the total transactions, inbound deals accounted for 41.8% of the total value, domestic deals 57.5%, and outbound deals just 0.7%.
The telecom, media, and technology sectors dominated activity, contributing 83.2% of total deal value across nine transactions.
Which deals dominated the Thai M&A industry?
The standout transaction was the USD 6.7 billion merger and restructuring involving Gulf Energy Development, Intouch Holdings PCL, and Singtel Strategic Investments.
The deal includes a voluntary tender offer for Advanced Info Service PCL, valued at USD 3.2 billion, and Thaicom PCL, valued at USD 193.2 million. A share swap worth USD 3.3 billion between Gulf and Intouch Holdings will consolidate ownership before establishing a new entity.
Other notable deals included the Ratanarak Group’s USD 348.1 million acquisition of an additional 25.5% stake in Siam City Cement PCL, increasing its ownership to 71.9%, and Namwiwat Medical Corporation PCL’s acquisition of Malaysian medical supplier Reintech Sdn Bhd, with KPMG providing due diligence services.
Economic context and outlook
Despite tightened credit conditions, with the Bank of Thailand maintaining a 2.5% policy rate for ten consecutive months, Thailand’s economy showed resilience.
Exports grew 11.4% year-on-year in Q3, with multinational corporations continuing to invest. HP announced plans to relocate its manufacturing hub to Thailand, and Accor expanded its franchise operations, capitalizing on tourism growth.
Thailand’s robust M&A performance, driven by strategic consolidations and foreign interest, points to sustained momentum in the coming quarters, supported by strong export demand and growing domestic opportunities.
