TMK Chemical buys Malaysia's CCM for $230M to broaden product line
What's the deal? TMK ChemicalDealroom has a profile for this one. Try Dealroom → Bhd has agreed to acquire Chemical Company of Malaysia BhdDealroom has a profile for this one. Try Dealroom → (CCM) from Batu Kawan BhdDealroom has a profile for this one. Try Dealroom → for US$224.8M in a related-party transaction. The deal, announced after a letter of intent in June, gives TMK control of an integrated industrial chemical platform.
What does CCM do now? It is a different, larger company than the one Batu Kawan privatised in 2021. A 2024 restructuring folded in Malay-Sino Chemical Industries — Malaysia's largest chlor-alkali maker — and See Sen Chemical, a sulphuric acid producer.
By the numbers: CCM's net profit reached US$18.3M in the year to September 30, 2025, up from US$17.9M, driven by higher caustic soda volumes. That is comparable to TMK's US$23.3M for its year ended December 31, 2025.
Why now? Both companies face margin pressure. CCM's net profit fell 20.7% to US$10.6M in the nine months to June 30, 2026, on higher production costs; TMK's rose 68.6% to US$17M in the first half of 2026.
What's the endgame? TMK wants a wider product range and deeper ties with a combined customer base. It has not set formal integration targets, saying focus areas will likely include "plant and asset utilisation, procurement and cost efficiencies," pending a post-completion review.
What's the price signal? Analysts call the price — a price-earnings multiple of 12.9 times — reasonable against peers such as Ancom Nylex Bhd, Luxchem Corp Bhd, and Techbond Group Bhd. Batu Kawan has invested US$205.9M in CCM since 2020.
The signal: The deal consolidates Malaysia's industrial chemicals sector under a single, export-oriented operator. About 40% of TMK's sales come from abroad, led by Singapore and Vietnam, positioning the enlarged group to serve both domestic and regional demand.
Read more: newswav.com
Image credit: Nick Bramhall
