PWC sees mergers on the rise
PricewaterhouseCoopers FAS has forecast that tough competition in the local market this year will force more companies in the energy, telecommunications and banking sectors to consider mergers.
Natthawat Chunhawut-tiyanont, director of the transaction department, said at a seminar yesterday that companies in the energy sector would be pressured by increasing oil prices, while the telecoms sector would be affected by the need for huge funding to develop technology. Banks will have to adjust their operations to not only comply with regulations the Bank of Thailand has established in its master plan, but also to develop Basel II (requirements on loan-loss provisioning). The director added that last year there were 350 Thai merger and acquisition deals worth about US$5.8 billion (Bt225 billion), compared to 220 deals in 2004 worth about $3.7 billion. Stock Exchange of Thailand president Kittiratt Na Ranong said the bourse would throw its full support behind any merger as long as it is conducted according to the law. Kittiratt warned that there could be cases where a merger is leaked to individuals who would then take advantage of the information to manipulate the stock market.
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