TMK Chemical Bhd had announced entering into a conditional share sale and purchase agreement, to acquire 100%
of Chemical Company of Malaysia Berhad from Batu Kawan for a purchase consideration of RM939.9 million, satisfied through a combination of approximately RM438.5 million in cash and the issuance of 262.5 million new TMK shares at an issue price of
RM1.9098 per TMK share.
The group said the acquisition represents a significant step-up in scale for TMK and its subsidiaries adding CCM’s substantial manufacturing capacity and nine operating facilities across Peninsular Malaysia to the TMK Group’s existing end-to-end inorganic
chemicals platform. CCM, together with its subsidiaries and associate company is Malaysia’s largest chlor-alkali producer and a leading manufacturer and supplier of chlor-alkali chemicals, sulphur derivatives and polymer chemicals. Its products serve
a wide range of industries, including rare earth, water treatment, rubber gloves, oleochemicals, oil and petrochemicals, electronics and textiles.
For the financial year ended 30 September 2025, the CCM Group recorded revenue of RM701.8 million and profit after tax and minority interest of RM76.6 million.
Strategically, the acquisition brings together the TMK Group’s capabilities in chemical trading, storage and logistics with CCM’s large manufacturing base and broader product portfolio. The combination is expected to generate economies of scale and operating efficiencies through optimised procurement and raw material purchases, improved logistics and distribution
efficiency, and better asset utilisation.
Commenting on the proposed acquisition, TMK’s Executive Director and Managing Director, Wong Kin Wah, said: “The proposed acquisition represents a significant leap forward for TMK and forms an important part of our transformative strategy. CCM is substantially larger today than when it was privatised and delisted in 2021. Since then, Batu Kawan has consolidated its chemical
operations under CCM, increasing its manufacturing base and broadening its product portfolio. With close to four decades of experience in the inorganic chemicals industry, TMK understands this business well and sees a strong strategic fit between CCM’s capabilities and what we have built over the years. The combination will allow us to create a stronger, more integrated chemicals
business with significantly greater scale and reach.”
“For us, it is not simply about becoming bigger. It brings together two highly complementary businesses to create a more efficient, competitive and resilient organisation. We are excited about the long-term potential and believe the enlarged group will be better positioned to capture new opportunities” he added.
