KUALA LUMPUR: Merchantrade Asia Sdn Bhd has announced the acquisition of Vital Rate Sdn Bhd's (VRSB) assets, strengthening its foothold in the money exchange business.
With the acquisition, Merchantrade is gearing to capture 10 per cent market share in the next three years.
Merchantrade's money exchange business now stands at RM3.3 billion, after the acquisition of nine VRSB's money changing outlets, from the previous RM1.2 billion.
The acquisition also translated into a boost of Merchantrade's market share in the money exchange business to 4.7 per cent from 1.7 per cent previously.
The money changing industry volume is estimated to be worth RM70 billion in 2016.
Currently, Merchantrade provides a full spectrum of money services business including remittance and wholesale currency services with 24 per cent market share respectively.
Merchantrade founder and managing director Ramasamy K Veeran said the acquisition of VRSB's assets is in line with the company's strategic business goal in capturing the retail market of the money exchange business especially at prime locations.
"The strategic advantage of VRSB's business is that it has presence at high-end shopping malls such as Pavilion, KLCC, KL Sentral and other strategic tourist areas, of which Merchantrade can now reach out to a wider demographic of customer base.
"The acquisition will not only expand our network of physical branches which now stands at 84 Merchantrade owned branches, but will also bring the management talent and relationships with key businesses and customers," he said during the announcement ceremony here, today.
He said Merchantrade's strong brand name and expertise in the money services business industry with VRSB's knowledge in currency management will bring added value and advantages to its already strong customer base.