Companies growing via acquisition

The local grown companies had outgrown the tiny pond where they were first born.

Muhibbah Engineering taken over Favelle Favco and Kroll, the established AUS crane company that built NY World Trade Centre;

Bonia acquired Braun Buffel, the century old German high-end brand, with huge presence welcome by the wealthy China market;

Khind, a little Sekinchan electrical shop in 60s grown and acquired Ancom (2011) and Mayer (2012) in Hong Kong and Singapore.

It is not about local companies expand oversea, it is the change in boardgame today.
These companies  chose to grow through acquisition. Why? Because today they grew so strong that they are ready for the crisis, a game that required some patience to finally see their competitors in trouble, and came in as a "white knight", to takeover the competitors, its entire legacy and goodwill.

Business-friendly financial backdrop in Malaysia and the low interest rate environment world wide is the catalyst for growth via acquisition. Instead of putting FD for 3% in the bank, they choose to buy these Europe/ Western companies in trouble. Not only the acquisition sees higher return, it saw an rebranding and technology transfer from the knowledge and fame these new acquired targets carried.

"There are so many business out there offered us to take over them, its time for us to pick the sweetest apple." I was once told when i questioned on their aggressive exercise, for a long known prudent name.

The boardgame is gradually changing, you think you are working in a western company, the ultimate holding company could be an Asia company. As quite a number were now owned by Asia companies especially during the 2008 crisis. You will gradually see new cultures gradually blends in, and found it surprisingly familiar. For those who are always looking forward to work in western co that offered better remuneration and more "humane" workload, rethink.

We are proud of our local companies. More business to the bank in short term as they need financing to support them to expand. Sadly, they joy could be short-lasting, if the local growth remained stagnant. (government project to drive GDP growth is temporal). In many cases, the companies got attracted to the better business opportunity oversea and put heavy investment overseas. Names like Genting, Kuok's group and AirAsia shifted their base to Singapore, Hong Kong and Indonesia. Look at the negative remarks (official one from Tony Fernandez while unofficial one from Lim Kok Thye and Robert Kuok)   they made before their departure.

I am worried as the citizen.
Sometimes I hope I don't have to know about all this, stayed in my small town earn a living on a simple job.

A customer once told me these and i hope to tell the country's leader:

"Now our company grown so strong, you can't use the old method (pricing and covenant) and assume we will do everything at your bidding. With our scale today, many bankers were knocking at our door hunger for business but you guys looked adamant in your old way. 

Change your way or we change our banker. 
You are going to lose more business besides merely the loan business, if the relationship exited."

More local companies are waiting.