Malaysian Planters rooting for mergers & acquisitions
United Malacca chief executive officer Peter Benjamin(pic) told StarBiz there would be a big preference for brownfield among big plantation companies, going forward, especially with the ban on new oil palm land expansion in Malaysia as well as the halt on new permits for oil palm plantations in Indonesia.
PETALING JAYA: The appetite for oil palm brownfield in Malaysia among big planters is expected to sustain this year with mergers and acquisitions (M&As) in the offing.
Industry experts and analysts pointed out that the ban on new oil palm land expansion, rising cost of production (COP), weak crude palm oil (CPO) prices and lack of interest in greenfield acquisition could trigger more M&A activities this year compared with 2018.
Plantation companies announced combined deals estimated at RM1.24bil in Malaysia last year and barely into 2019, a new deal worth RM175mil has been announced.
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