ArrowArtboardCreated with Sketch.Title ChevronCrossEye IconIcon FacebookIcon LinkedinShapeCreated with Sketch.Icon Mail ContactPath LayerIcon MailMenu BurgerPositive ArrowIcon PrintIcon SearchSite TitleTitle ChevronIcon Twitter
Health Care

Top Glove in talks to acquire high-end rival

Malaysian company could move upmarket and enlarge customer base

A worker inspects products at a Top Glove factory in Klang, outside Kuala Lumpur.   © Reuters

KUALA LUMPUR -- Top Glove on Friday said it is negotiating to buy all shares of rival Aspion, the surgical glove producing unit of Adventa Capital.

The company is already the world's largest maker of natural rubber gloves.

The group has entered into exclusive talks and has until Jan. 15 to negotiate definitive agreements with Malaysia-incorporated Aspion. Should the purchase go through, Top Glove would gain access to a high-tier market and technology.

Aspion produces specialized surgical gloves that command higher margins. But the market is tightly regulated. To meet quality standards, makers need specialized technical and manufacturing know-how. Top Glove said the purchase would offer a "breakthrough" into a sophisticated market, enabling it to make inroads into the advanced economies of North America, Europe and Japan.

"We are confident the resulting significant synergies, economies of scale and enlarged market presence will strengthen the group's growth profile," Lim Wee Chai, Top Glove's founder and executive chairman, said in a statement.

The group did not say how much it expects to pay for Aspion, only that it will consider the specialist glove maker's 80 million-ringgit ($19 million) projection for profit after tax for fiscal 2018.

The world's annual demand for surgical gloves is about 2 billion pairs. The market, valued at $1.4 billion, is expected to grow to 3 billion pairs by 2020 at an annual rate of 8%.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

{{sentenceStarter}} {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} this month

Stay ahead with our exclusives on Asia; the most dynamic market in the world.

Benefit from in-depth journalism from trusted experts within Asia itself.

Try 3 months for $9

Offer ends September 30th

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media