As expected, there has been a global trend of declining M&A activities due to uncertainties caused by the COVID-19 pandemic; Thailand’s deal landscape in Q2 2020 has naturally followed suit. Based on discussions with investors, deal flows are likely to increase towards the end of the year. With interest rates at historic lows, companies with solid balance sheets may look to explore distressed opportunities in the next few quarters as more opportunities present themselves. Given that declining valuations are creating opportunities to pursue deals that create long-term value, we expect M&A activities to cautiously move forward.
The majority of announced transactions in terms of deal value this quarter were in the Real estate, infra & construction, Energy & natural resources and Industrial manufacturing sectors, accounting for 83.1% of total deal value. The largest deal announced was The Megawatt Co., Ltd.’s acquisition of a 90.0% stake in Siam Solar Generation PCL for USD 36.1 million.
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