What To Know
- While the global mergers and acquisitions (M&A) landscape is showing signs of recovery in 2025, Thailand’s financial services sector is bucking the trend, stuck in a prolonged slowdown expected to persist through the end of the year.
- Deal volume held steady in Europe, the Middle East and Africa (EMEA), and the Americas, but Asia Pacific recorded a 4% drop, with deal value in the region falling by 15%.
Bangkok Business News: Thai M&A Activity Drags Despite Global Upswing
While the global mergers and acquisitions (M&A) landscape is showing signs of recovery in 2025, Thailand’s financial services sector is bucking the trend, stuck in a prolonged slowdown expected to persist through the end of the year. A new report by PwC Thailand reveals that dealmaking activity remains sluggish, held back by a combination of local economic instability, political uncertainties, and shifting global dynamics such as tariffs and rising funding costs.
Thai financial services firms are slowing M&A activity as economic and political uncertainties loom over 2025
Image Credit: PwC Thailand
In the first half of 2025, deal flow in Thailand’s financial services industry remained muted compared to previous years, with most companies taking a wait-and-see approach. This Bangkok Business News report highlights that despite global M&A deal value rising by 15%, Thailand’s own sector has been relatively dormant. Companies are reportedly wary of committing to large transactions, especially given the unclear macroeconomic picture at home and abroad.
Economic Woes and Sector-Specific Pressures Weigh Heavily
Phuwin Nochuwet, Partner in the Deals Practice at PwC Thailand, attributes the inactivity to multiple layers of concern. Rising global interest rates, transitions to artificial intelligence, and increased trade barriers have all added to the uncertainty, with dealmakers hesitating in the face of potential risks. He adds that even with the Bank of Thailand maintaining a low policy interest rate, activity is unlikely to pick up significantly before 2026.
The banking sector, in particular, faces a tough climate. Challenges such as a sluggish economic recovery, soaring household debt, and increasing non-performing loans (NPLs) are reshaping the landscape. At the same time, the emergence of branchless banks is forcing traditional players to reconsider their operating models. The securities industry is also under strain as a sluggish stock market triggers forced margin sales and intensified competition from digital players, prompting some brokerage firms to explore M&A for survival.
The insurance sector is undergoing its own transformation. New regulations around health insurance co-payments and the complexities of electric vehicle (EV) coverage are reshaping risk strategies. Some insurers are even avoiding certain EV models due to high claim costs, creating pressure to consolidate smaller players.
Global Landscape Shows Divergence from Thai Market
Globally, PwC recorded 2,313 deals in the financial services sector in the first half of 2025—down just 1% year-over-year—while total deal value surged, driven by megadeals such as Global Payments’ $24.25 billion acquisition of Worldpay. Deal volume held steady in Europe, the Middle East and Africa (EMEA), and the Americas, but Asia Pacific recorded a 4% drop, with deal value in the region falling by 15%.
This underscores how the Thai slowdown is part of a broader regional cool-off, although Thailand’s situation is exacerbated by domestic challenges.
Call for Adaptability and Fintech Partnerships
PwC Thailand is urging Thai financial services companies to adopt new strategies by embracing fintech collaborations instead of relying solely on traditional mergers or internal development. Phuwin emphasized that partnerships with tech startups can offer faster innovation, improved digital capabilities, and better customer experiences.
“Large financial services businesses must be agile, ready to pivot, and willing to work with non-traditional players,” Phuwin said. “Strategic collaborations, rather than just buyouts, are now key to long-term growth.”
As the second half of 2025 unfolds, financial services companies in Thailand will need to prioritize strategic adaptability over rigid expansion plans. Embracing fintech ecosystems, forming intelligent alliances, and staying alert to digital shifts will be critical. Without such moves, they risk being left behind in a fast-changing global financial environment.
For the latest on Thailand financial services mergers, keep on logging to Bangkok Business News.