Expect more mergers, acquisitions in 2007
Malaysiakini.com
Dec 7, 2006

The government said it expected more corporate mergers and acquisitions next year as it pursues a plan to attract foreign investors by creating a larger number of big companies.

"We expect more mergers and acquisitions next year. One of the factors to create liquidity in the stock market will be mergers and acquisitions," Second Finance Minister Nor Mohamed Yakcop told reporters.

Larger firms with greater liquidity will enable foreign funds to buy substantial amounts of shares in the Malaysian market without causing volatility in share prices, he said.

"We are happy to see more mergers and acquisitions and I think there will be more."

The government recently supported a proposal to merge Sime Darby, Kumpulan Guthrie and Golden Hope Plantations to create the world's largest plantation firm with a market capitalization of RM31.4 billion.

Meanwhile, a plan to merge two major newspaper groups to form the largest print media group in the country has been put on hold due to resistance to the deal from elements in the ruling Umno.

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