FOLLOWING the completion of the acquisition of IJM Plantations Bhd
by Kuala Lumpur Kepong Bhd (KLK), the spotlight has been on that sector and whether more players will follow suit with similar deals.
Scarce land and strong crude palm oil (CPO) prices coupled with the effects of the pandemic on plantation companies, especially in relation to their labour resources, are said to be reasons why planters would seek to engage in mergers and acquisitions (M&As).
The severe shortage of foreign workers due to the closure of the national borders as well as environmental, social and governance (ESG) issues in the labour-intensive industry have pushed companies to focus on their core businesses.
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