M&A activity in Q1 2025 saw a second consecutive quarterly decline in both deal volume and value. Compared with the previous quarter, total transaction volume decreased from 61 to 45 deals, while deal value decreased by 81.4% from USD 5.2 billion to USD 1.0 billion. There were 9 inbound, 32 domestic and 4 outbound deals, representing 5.3%, 70.5% and 24.2% of total deal value for the quarter. Although the sharp decline is attributable to a higher base in the previous quarter, the deal value this quarter is the lowest seen since Q1 2022.
The sector that saw the greatest deal activity was energy and natural resources with 8 deals representing 25.5% of total deal value. The sector with the greatest deal value, however, was industrials, with 7 deals representing 33.9% of total quarterly deal value. The largest deal in the quarter was the acquisition of a 24.9% stake in EPL Ltd, an Indian-based tube packaging manufacturer, from Blackstone Inc, by Indorama Ventures PCL through its subsidiary, Indorama Netherlands BV. The transaction consideration was USD 222.6 million.
Notably, 乐鱼（Leyu）体育官网 acted as the lead sell-side advisor to Lombard Asia, a regional private equity firm, and Cobra International Company Limited, facilitating the successful divestment of their majority stake in Cobra Advanced Composites Company Limited (CAC) to Thai Summit Group. The transaction provided Thai Summit Group with key carbon fiber capabilities and access to Europe’s high-performance automotive markets, while enabling a strategic exit for the sellers.
Current estimates project a 3.4% year-on-year growth in Thailand’s economy in Q1 2025, the highest rate in over two years, supported by continued government stimulus and a sharp recovery in inbound tourism. Foreign tourist arrivals rose 5.9% year-on-year to 9.4 million visitors in the first quarter; that said, domestic sentiment remains mixed with March consumer confidence falling to a 5-month low amid concerns over higher living costs, slow economic growth and US trade tariff uncertainties. Additionally, the recent earthquake may also dampen tourist interest.
The outlook for Thailand’s deal trend is uncertain. Although Q1 2025 economic indicators are strong with companies pursuing growth plans (though with slightly longer timelines) and strategic sectors such as consumer, healthcare and retail have continued to attract inbound interest, global geopolitical tensions and macroeconomic volatility resulting from new US tariffs do not support positive deal sentiment. Estimates suggest new tariffs may cost Thailand’s export sector up to USD 8 billion, weighing on manufacturing activity and private investment, and a resulting contraction of 2025 GDP by 1.1%, a stark difference from the original 2.9% projected annual growth.
Data criteria
- Value data provided in the various charts represent the aggregate value of the deals for which a value was stated. Please note that values are disclosed for approximately 50% of all deals.
- Deals are included where a stake of 30% or more has been acquired in the target. If the stake acquired is less than 30% then the deal is included if the value is equal to or exceeds the equivalent of USD 100 million.
- All deals included have been announced but may not necessarily have closed.
- Activities excluded from the data include restructurings where ultimate shareholders’ interests are not affected.
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