Mergers and Acquisition (M&A) activity in the financial service sector across the Asia Pacific region was on the increase in 2021 and In Malaysia, a total of 31 disclosed transactions valued at US$1.63 billion was observed for that period, says Chan Siew Mei, Head of Advisory at KPMG in Malaysia.
We anticipate this momentum to continue through 2022 even as Malaysia transitions towards the endemic phase beginning 1 April. “Deal-making is a key component in driving business strategy, and more businesses today recognize that,” she said in a press statement.
Some recent high-value deals signal opportunities within the landscape. For example, the asset management subsector retains interest from local and international investors, Chan said.
” Recently, in a deal valued at USD367 million, Affin Bank Bhd had agreed to transfer its controlling stake in Affin Hwang Asset Management Bhd to Luxembourg-based private equity fund CVC Capital Partners. This continued interest could bode well for unit trust funds and Islamic funds, which have both historically seen significant growth in the market, “Chan said.
“The insurance sub-sector has also seen significant growth, with significant deals totaling US$856 million in the past year attributed to acquisitions of local insurance companies by Italy’s Assicurazioni Generali and America’s Liberty Mutual Insurance Company.
This sector might see more consolidation, particularly in the acquisition of Malaysian insurers by foreign multinationals, as global insurers continue to seek expansion of their operations through cross border M&A,” Chan said.
[1] CVC signals strong confidence in Malaysia through landmark investment in leading asset management company (28 January 2022)
[2] GENERALI SIGNS AGREEMENT IN MALAYSIA TO ACQUIRE MAJORITY STAKE IN AXA AFFIN JOINT VENTURES AND PLANS TO PURCHASE 100% OF MPI GENERALI (22 June 2021)
