An Overview of Mergers and Acquisitions in Malaysia

Key Takeaways

• Mergers and acquisitions in Malaysia can involve acquisitions, mergers, divestments, or changes in controlling ownership.
• M&A transactions usually require careful planning, due diligence, deal structuring, documentation, and regulatory coordination.
• The M&A process in Malaysia may involve oversight from regulators such as the Securities Commission Malaysia, Bursa Malaysia, the Foreign Investment Committee, or other relevant authorities, depending on the transaction.
• Businesses should assess their transaction strategy, due diligence requirements, regulatory implications, and advisory support before entering an M&A process.
• CNP Group provides mergers and acquisitions services for buy-side and sell-side clients across Malaysia, Southeast Asia, and other regions.

In This Guide:

1. What M&A Activity Typically Involves
2. The M&A Process: A Stage-By-Stage Overview
   1. Stage 1: Strategy And Planning
   2. Stage 2: Identification And Preliminary Review
   3. Stage 3: Due Diligence
   4. Stage 4: Structuring And Documentation
   5. Stage 5: Completion And Regulatory Coordination
3. Areas To Reflect On Before An M&A Transaction
4. What An M&A Advisory Firm Typically Does
5. How CNP Group Approaches M&A Advisory
6. Frequently Asked Questions About Mergers And Acquisitions In Malaysia

What M&A Activity Typically Involves

Recent Secutiry Commission Malaysia (SC) reporting indicates higher takeovers-and-mergers offer-document activity in 2024 compared with 2023. The Securities Commission Malaysia cleared 21 offer documents worth RM18.22 billion for takeovers and mergers in 2024, compared to 10 worth RM5.53 billion in 2023.

Mergers and acquisitions cover a range of corporate transactions. This may include one company acquiring another, two companies combining operations, a business divesting a division, or a controlling stake changing hands.

In Malaysia, these transactions may be subject to oversight by the Securities Commission Malaysia, Bursa Malaysia, the Foreign Investment Committee, or other regulatory bodies, depending on the nature of the deal and the parties involved.

The scale and complexity of transactions can vary considerably. However, most M&A activity requires careful planning, rigorous due diligence, and coordinated execution across legal, financial, and regulatory workstreams.

This article provides a general overview of how M&A transactions typically progress in Malaysia and what each stage generally involves.

The M&A Process: A Stage-By-Stage Overview

While no two transactions are identical, the M&A process in Malaysia typically progresses through several key stages.

Stage 1: Strategy And Planning

Before any transaction begins, a business needs to clarify its strategic objectives.

This includes identifying what the company is trying to achieve and what kind of target, buyer, seller, or transaction structure would best support those goals.

This early planning phase shapes the parameters for the search, evaluation, and negotiation that follow.

Stage 2: Identification And Preliminary Review

Potential targets or counterparties are identified and assessed against the strategic criteria established in the planning stage.

Initial discussions may also take place, usually subject to appropriate confidentiality arrangements.

At this stage, the business may begin assessing strategic fit, transaction feasibility, and whether further due diligence is warranted.

Stage 3: Due Diligence

Due diligence is the structured investigation of a target business.

It typically covers financial, legal, operational, commercial, and regulatory dimensions. The findings from due diligence can affect deal terms, valuation, transaction structure, risk allocation, and integration planning.

For buyers, due diligence helps identify risks before committing to the transaction. For sellers, preparation for due diligence helps present the business more clearly and reduce delays during the transaction process.

Stage 4: Structuring And Documentation

Advisors work with the parties to structure the transaction and prepare the required documentation.

This may include determining the appropriate deal structure, reflecting agreed commercial terms, and coordinating with legal counsel on the necessary agreements.

The structure of the transaction can affect taxation, regulatory approvals, financing, risk allocation, and post-completion integration.

Stage 5: Completion And Regulatory Coordination

The final stage involves meeting closing conditions, obtaining required regulatory approvals, and coordinating with legal counsel, auditors, regulatory specialists, and other relevant parties.

For transactions involving listed companies or regulated entities, this may include filings and submissions to the relevant authorities.

Clear coordination is important at this stage because unresolved regulatory, legal, or documentation issues can delay completion.

Areas To Reflect On Before An M&A Transaction

If your business is considering an M&A transaction, the following questions may be useful starting points:

• Is the strategic rationale for the transaction clearly defined?
• Has your business assessed what due diligence will require in terms of time and internal resources?
• Are the regulatory implications, including approval requirements, understood?
• Does your business have access to advisors with relevant M&A experience in Malaysia?

These are not exhaustive questions, but they reflect the kinds of issues that tend to surface early in a transaction process.

What An M&A Advisory Firm Typically Does

An M&A advisory firm supports clients through some or all stages of the transaction process.

This typically includes:

• Advising on transaction strategy and structure
• Coordinating financial and regulatory due diligence
• Supporting documentation and deal structuring
• Managing interactions with regulators, legal advisors, and other parties involved in the transaction
• Providing guidance on the applicable regulatory framework

The scope of support may vary depending on whether the client is a buyer or seller, the complexity of the transaction, and the regulatory environment involved.

How CNP Group Approaches M&A 

CNP works with both buy-side and sell-side clients across different transaction types. The firm operates across Malaysia, Southeast Asia, and other regions.

CNP’s M&A services cover the full transaction process, from initial planning through due diligence, deal structuring, and completion, with support coordinated across the relevant regulatory and advisory workstreams.

For businesses that also require support with related areas, such as financial reporting under MFRS, IFRS, or U.S. GAAP, or preparation for a listing on Bursa Malaysia, NASDAQ, or NYSE, CNP’s services extend across those areas as well.

Speak To CNP Group About Your M&A Requirements

If you are considering an acquisition, sale, or merger and want to understand what specialist M&A advisory support involves, CNP Group invites you to get in touch to discuss your situation.

Call: +603 4812 8818
Email: enquiry@cnp.group 

References

BERNAMA. SC: 21 Offers Of Takeovers And Mergers Worth RM18.22 Bln Cleared in 2024. 2025. Retrieved from: https://bernama.com/en/news.php?id=2404233 

 

Frequently Asked Questions about Mergers & Acquisitions (M&A) Services

 

 

This article is for general informational purposes only and does not constitute financial, legal, or professional advice. Readers should consult a qualified professional for their specific needs.