Article by Azmi & Associates: Strategic Management of Your Inbound Mergers & Acquisitions Exercise in Malaysia

Mergers & acquisitions (“M&A”) exercises are part of a business strategy whereby two companies consolidate to become one entity (in case of a merger) or one company (or individual) purchases assets of or shares in, another company (in case of acquisition). Although the COVID-19 pandemic has strongly disrupted Malaysia’s economic environment, the long-term effects of this economic disruption on M&A activities remain unclear. In the short term, M&A activities have fallen markedly since the pandemic, with only 47 deals valued at US$4.3 billion taking place in 2020, compared to 52 deals valued at US$5.7 billion in 2019. Foreign investors may likely be dissuaded by the hampering of consumer spending as a result of Malaysia’s weakening economy.

Read More