Loosen requirements in acquisitions of business subsidiary to improve dealmaking: EY

It will enhance mergers and acquisition schemes in the country.

An analyst has suggested that the mergers and acquisitions scheme in Singapore could still be improved and more useful for firms if the requirements for certain conditions can be eased.

EY said in its latest report that one of the conditions is allowing the acquiring subsidiary to have some trade or business and not requiring it to be wholly owned throughout the period of the writing down allowances.

“The M&A scheme in Singapore encourages local companies to expand through strategic acquisitions,” noted EY.

Another suggestion is that the deal subsidy on transaction tax costs be allowed to be transferred to other Singapore firms as part of the group relief system provided that the group firms are 100% owned.