
The Trade Competition Commission (TCCT) says merger and acquisition (M&A) activities are rising in the transport and logistics sector, driven by fierce price competition and potential risks of financial losses.
Visanu Vongsinsirikul, secretary-general of the TCCT, said the service and industrial sectors would continue to be key areas to monitor for business M&As.
Data from the TCCT on business mergers in Thailand from 2023 to 2024 shows these two sectors lead both in terms of the quantity and value of mergers.
In the transport and logistics sector, there is a diverse range of players, including major transport operators, online platform providers, and e-commerce players engaged in time-sensitive or short-distance deliveries.
This diversity has led to a complex market landscape with intensified competition, said Mr Visanu.
As various service providers offer similar solutions, competition has increasingly focused on pricing, he said.
In the short term, this approach could lead to financial losses for companies as they engage in price wars to secure market share.
In the long run, this situation could pose challenges for smaller competitors. There is a potential risk that larger firms or those with significant market influence might capture a bigger market share, enabling them to raise prices.
To thrive in this competitive market, transport companies need differentiated strategies to create competitive advantages, Mr Visanu said.
According to the TCCT, 163 merger deals were completed worth 4.88 trillion baht from 2019 to 2024.
The peak activity was in 2022, when 42 mergers took place, while the greatest value generated by merger deals was recorded in 2021 at 2.05 trillion baht.
In 2024, 21 merger deals took place worth 599 billion baht. This included 17 finalised merger deals and four pending approval.
The transport and logistics sector dominated with deals worth 182 billion baht, followed by the healthcare sector.
Although the healthcare sector had only one case that required approval, the value of the merger deal was 125 billion baht.
Together, these sectors contributed to over 51% of the total value of merger deals for 2024.
Globally, merger activities have also been increasing, according to the TCCT.
For example, Japan experienced a significant surge in merger activity in 2024, the highest level recorded since 1985.
This increase was largely driven by private equity funds acquiring businesses from Japanese companies.
In the United States, 2025 is projected to bring merger activity worth in excesss of $4 trillion, marking the highest level in four years.
This trend is attributed to President Donald Trump, who is expected to strongly support the private sector by reducing regulatory barriers related to M&As.
Mr Visanu said Thailand's merger activity this year is also expected to grow.
He urged business operators planning mergers to thoroughly study the competition law and the TCCT's regulatory guidelines before proceeding.