Thai Bank M&A Is About Coups and Condoms
Stagnant politics and population force a hunt for yields in more dynamic countries, like Indonesia.
By Andy Mukherjee (Bloomberg)
https://www.bloomberg.com/opinion/articles/2019-12-14/bangkok-bank-bid-for-indonesia-s-permata-reflects-thai-stagnationweighed a bidnoted beforeMechai Viravaidya, known as Mr. Condom, in the 1970s, has worked a little too well: The 68 million population is expected to shrink by a third by the end of the century.
Apart from population, the other big driver is politics. The Thai overseas M&A wave picked up momentum as democracy was snuffed out in 2014 by the second military coup in eight years. Since then, private investment in the domestic economy has ebbed and flowed with global demand. Last year was good; this year is bad. Elections in March returned Prayuth Chan-Ocha, the former general who led the junta, as prime minister. But with efforts under way to the best in Asia, is compelling. Permata is not in the league of a PT Bank Rakyat Indonesia or a PT Bank Central Asia, but as Japanese lenders like Mitsubishi UFJ Financial Group Inc. know only too well, you try to get a foot in the door in Indonesia 3.8%
Stagnant politics and population force a hunt for yields in more dynamic countries, like Indonesia.
By Andy Mukherjee (Bloomberg)
https://www.bloomberg.com/opinion/articles/2019-12-14/bangkok-bank-bid-for-indonesia-s-permata-reflects-thai-stagnationweighed a bidnoted beforeMechai Viravaidya, known as Mr. Condom, in the 1970s, has worked a little too well: The 68 million population is expected to shrink by a third by the end of the century.
Apart from population, the other big driver is politics. The Thai overseas M&A wave picked up momentum as democracy was snuffed out in 2014 by the second military coup in eight years. Since then, private investment in the domestic economy has ebbed and flowed with global demand. Last year was good; this year is bad. Elections in March returned Prayuth Chan-Ocha, the former general who led the junta, as prime minister. But with efforts under way to the best in Asia, is compelling. Permata is not in the league of a PT Bank Rakyat Indonesia or a PT Bank Central Asia, but as Japanese lenders like Mitsubishi UFJ Financial Group Inc. know only too well, you try to get a foot in the door in Indonesia 3.8%