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Brand and Business Mergers picking up pace in Jamaica

Entrepreneurs and CEOs who are also looking for acquisition and merger targets may also find themselves victims and target of others. Entrepreneurs and CEOs, who have been hoarding cash, are now on the prowl looking to buy up competitors on the cheap. With debt cheaply available some companies are bound to be tempted to pursue acquisitions, so prepare defense strategies against bids from rivals. It’s either eat or be eaten in this game

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13 years ago

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As markets become increasingly competitive and opportunities for growth and expansion diminish, entrepreneurs and CEOs look to mergers and acquisition to grow their business. In Jamaica a number of such initiatives have taken place over the last 12 to 18 months.

One of the big reasons entrepreneurs and CEOs look to business combinations like this is to control uncertainty and the future – thinking about where their companies will secure critical supplies, where their competition comes from today and tomorrow, and how they can reduce the effects of an ailing business.

A merger occurs when two companies combine to form one new company. In this case there is nothing left of the combining companies.  An acquisition on the other hand is when one company buys another and it becomes part of the buying organization.

 

Other forms of business combinations include joint ventures, and consortia. A joint venture is when two or more separate companies form a third business that is controlled and owned by the others (called the parent organizations).  A consortium on the other hand is when many companies pool their resources to solve one problem. For example, many pharmaceutical companies may put their money together to work on an R&D project that provides all the companies with the results.

So while not a new or innovative business growth strategy the recent spate of mergers warrant some amount of attention and focus.

The recent merger of GSB and Churches Co-op Credit Unions was a move designed to create critical mass and strategic alliances. The merged entity renamed and rebranded First Heritage now features a combined membership of over 165,000 and a total asset portfolio of J$8.04 billion making it now the second-largest credit union by assets, behind the Jamaica Teachers’ Association Cooperative Credit Union. The group as a result of the merger will also be merging or expanding subsidiaries dedicated to funds management and small business loans increasing the overall business portfolio.

“The rationale behind the name First Heritage is based on the fact that CCCU is founded on the merger of three churches that stood as historical examples of institutions of integrity and merit, Secondly, GSB is recognized as the first and oldest credit union in Jamaica, which has served the public sector for over 60 years, having had one Transfer of Engagement. Both credit unions have a combined heritage of over 100 years and both survived the financial meltdown of the 1990s,” said Basil Naar, CEO of Churches, in a release put out by both companies at the time.

Another recent merger is that of The University of the West Indies (UWI) Mona School of Business and Department of Management Studies (DOMS). The merger executed over eight months taking effect August 1 created the largest business school in the region.

Professor Evan Duggan, former head of DOMS and the new dean of the Faculty of Social Sciences under which the new Mona School of Business and Management (MSBM) falls, said that the merger will correct the anomaly of having two business schools on one campus.

“We now have corrected the anomaly and the brand dilution and brand bifurcation it created in the mind,” said Duggan at the official launch of the renamed MSBM.

Insisting that the merger was not simply a matter of cutting operational costs, Duggan said: “We did not go after this for gaining false efficiencies. Through this merger, we will achieve critical mass, plus the economies of scale and scope to address our goals. The merger will also allow for AACSB accreditation, which is the best globally.”

Principal of UWI, Mona, Professor Gordon Shirley, said the new school will benefit from the “strong brand identity” of MSB while the new school will reflect the research and publication productivity of management studies.

Pan Caribbean Financial Services, itself the creation of numerous mergers and acquisitions over the last 10 years, will next month ask shareholders to vote in favor of changing the company’s name to Sagicor Investment Jamaica, a move to more closely align with parent company. The banking subsidiary Pan-CaribbeanBank is also expected to undergo a name change.

“It’s a big move but we think it’s the right thing,” said Donovan Perkins, chief executive officer of Pan Caribbean Financial Services. The company is majority owned by Sagicor Life Jamaica Limited, whose ultimate parent is Sagicor Financial Corporation of Barbados.

“We have a strong affinity; Sagicor owns over 85 per cent of PanCaribbean and so we wanted to reflect that close relationship which most people don’t realise,” he said.

The rebranding will rid PanCaribbean of any confusion between itself and Chinese-owned Pan Caribbean Sugar Company. The investment house felt the need in September 2011 to declare that the two were not associated to clarify public confusion over the names after the Chinese firm entered Jamaica.

Brand recognition was also an important factor in the decision making process as the main gain would be brand recognition and collaborations in areas such as marketing.

“Sagicor has an ambitious objective to maximize and grow. We contribute about 30 per cent of profits to Sagicor and so we are hoping that being more closely align to benefit from the marketing, recognition of the company and the brand in the market place,” Perkins said.

Arising out of the recent acquisition of the Capital and Credit Financial Group (CCFG) in June this year, Jamaica Money Market Brokers Limited (JMMB) has decided to embark on reorganization around a new entity called Jamaica Money Market Brokers Group. JMMB acquired 93 per cent of CCFG in a J$4-billion takeover resulting in the growth of its asset base to J$154 billion and its capital base to J$14.42 billion.

“All it will be is a simple reorganization of the group so the structure is better able to foster operational efficiency and ensure regulatory supervision. So all of those in the new structure will allow for improved business line and diversification in terms of product offerings to customers, which can only lead to increase shareholder value in the long term.” said Ellis at JMMB’s recent annual general meeting.

Keith Duncan, JMMB group chief executive officer, said the rebranding would be spread over a period – the company expects the complete rebranding and restructuring to take three months to a year to finalize.

Capital and Credit Remittances Limited will become CCRL-JMMB Remittances in the transitional phase, but will eventually be renamed JMMB Remittances. Capital and Credit Merchant Bank will also go through a transitional phase to become JMMB Merchant Bank.

Duncan said the strategic focus will be to leverage the group’s strengths and opportunities from the acquisition to grow market share, enhance ‘client intimacy’, and improve operational efficiencies across the territories where the group operates.

Entrepreneurs and CEOs who are also looking for acquisition and merger targets may also find themselves victims and target of others. Entrepreneurs and CEOs, who have been hoarding cash, are now on the prowl looking to buy up competitors on the cheap.  With debt cheaply available some companies are bound to be tempted to pursue acquisitions, so prepare defense strategies against bids from rivals.  It’s either eat or be eaten in this game.BM

 

 

 

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GCT Exemption Threshold for MSMEs Increased to JA$15 Million

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March 16, 2025

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The Government of Jamaica has announced an increase in the General Consumption Tax (GCT) exemption threshold from $10 million to $15 million for micro, small and medium-sized enterprises (MSMEs).

Minister of Finance and the Public Service, Hon. Fayval Williams, in opening the 2025/26 Budget Debate in the House of Representatives on March 11, said the change is aimed at supporting the growth and development of small businesses.

Mrs. Williams said the latest figures from the Small Business Association of Jamaica (SBAJ) show that there are an estimated 422,000 registered small businesses in Jamaica, generating 80 per cent of the jobs in the Jamaican economy.

“This means 1,136,240 persons in our workforce are employed by MSMEs,” the Finance Minister noted.

In addition, the Minister said the Government has allocated $2 billion to support MSMEs.

“[The sum of] $2 billion is in the Budget for the Development Bank of Jamaica (DBJ) to allow them to continue to facilitate sustainable growth of start-ups and MSMEs, and to continue to support women-led initiatives, entrepreneurship training, including digital skills bootcamp,” she outlined.

The DBJ is a public body in the Ministry of Economic Growth and Job Creation that channels financing to MSMEs, as well as large projects, to facilitate economic growth and development.

“It will continue to pursue innovative means of mobilising funding and leveraging private-sector investment and expertise through its venture capital programme, as well as public-private partnerships and privatisation transactions,” Mrs. Williams said.

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JA$2 Billion in Support to Jamaican MSMES

“Small business owners have said to me that opening a bank account for their business is difficult. They feel there’s no difference between the requirements for them as MSMEs, as opposed to a very large institution,” she noted.

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3 weeks ago

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March 16, 2025

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The Development Bank of Jamaica (DBJ) has been allocated $2 billion in the 2025/26 Estimates of Expenditure to support funding to the micro, small and medium-sized enterprise (MSME) sector.

Minister of Finance and the Public Service, Hon. Fayval Williams, made the disclosure while delivering the opening presentation in the 2025/26 Budget Debate in the House of Representatives on Tuesday (March 11).

“It (the DBJ) will continue to pursue innovative means of mobilising funding and leveraging private-sector investment and expertise through its venture capital programme, as well as public-private partnerships and privatisation transactions,” she informed.

Mrs. Williams noted the Government’s commitment to the MSME sector, which includes an estimated 422,000 registered small businesses, generating 80 per cent of the jobs in the economy.

Approximately 1,136,240 persons are employed by MSMEs.

The Minister acknowledged that there are several issues facing the sector, including lack of equitable access to financing, high interest rates and cumbersome requirements for opening bank accounts.

“Small business owners have said to me that opening a bank account for their business is difficult. They feel there’s no difference between the requirements for them as MSMEs, as opposed to a very large institution,” she noted.

She pledged to work with Minister of Industry, Investment and Commerce, Senator the Hon. Aubyn Hill, to reduce the requirements for the entities to open bank accounts.

The Finance Minister noted, further, that Government will be increasing the General Consumption Tax (GCT) exemption for small businesses from $10 million to $15 million.

By: Donique Weston JIS

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Jamaica Open For High-Value Agricultural Investments – Minister Green

“Now is the time for high-value agricultural investment, right here in Jamaica. Things that we produce in Jamaica are sought after all over the world. As such, we do believe there are significant opportunities now in agro processing,” Mr. Green said.

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March 16, 2025

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Jamaica is being touted as a prime destination for high-value agricultural investments.

Minister of Agriculture, Fisheries and Mining, Hon. Floyd Green, highlighted that the country is at a pivotal stage in its transformation, pointing out that the Ministry’s key objectives are to drive investment, expand trade, and strengthen food security.

“To achieve this objective, the nation must collaborate with its international partners,” he told members of the Diplomatic Corps on Wednesday (March 12).

Minister Green said Jamaica, having seen a declining debt-to-GDP ratio and myriad other positive economic outcomes in recent years, is well positioned to take advantage of global opportunities.

He was speaking during a Ministerial Briefing at the Ministry of Foreign Affairs and Foreign Trade in downtown Kingston, which formed part of activities marking Diplomatic Week 2025.

Mr. Green said while Jamaica currently benefits from several trade arrangements with its regional partners, the Government wants to expand the global footprint in trade and investment.

“What we want to see from my Ministry’s perspective [is] how we can leverage these arrangements to do much more. As such, we want to work with you (the diplomatic corps) to drive trade expansion, to reduce market barriers and to facilitate direct connections with importers and distributors so that we can expand our exports,” the Minister outlined.

He added that there are significant investment opportunities and win-win proposals for Jamaica and its partners.

“Now is the time for high-value agricultural investment, right here in Jamaica. Things that we produce in Jamaica are sought after all over the world. As such, we do believe there are significant opportunities now in agro processing,” Mr. Green said.

The Minister emphasised that one area now ripe for investments is orchard crop farming.

“We do have land available for investment in orchard crops. In fact, we’ve developed our first ever mango orchard, or mango agro park, where we invite private-sector investors to come in and establish 50-acre blocks of mango farms. That is going well. In fact, we’ve already established about 200 acres. We want to establish another 300 acres in this financial year,” the Minister outlined.

Mr. Green also touted opportunities in livestock farming and the dairy industry, noting that Jamaica is looking to leverage partnerships in this area.

“We want to facilitate greater bilateral discussions between you and your home countries with Jamaica’s agricultural sector around investment… around connecting investors with local projects that can accelerate economic growth,” he told the diplomats.

Mr. Green pointed out that Jamaica’s collaboration with its international partners has been instrumental in advancing the nation’s economic agenda.

By: Donique Weston, JIS

Photo: Yhomo Hutchinson

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Powering the Future: How Tech and Policy Are Driving Explosive Growth in Energy Storage, Renewables, and EVs

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March 5, 2025

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The energy storage, renewable energy, and electric vehicle (EV) industries are experiencing significant growth, driven by technological advancements and policy support.

Energy Storage Sector

The global energy storage market is projected to expand from USD 416.02 billion in 2025 to USD 841.19 billion by 2033, reflecting a compound annual growth rate (CAGR) of 9.2% (Straits Research, 2024). This growth is primarily attributed to the increasing integration of renewable energy sources and the need for grid stability. In the United States, battery energy storage capacity is expected to nearly double by 2024, reaching over 30 gigawatts (U.S. Energy Information Administration, 2023).Mission-Critical Energy Storage Battery Pack Sector.

Mission-Critical Energy Storage Battery Pack Sector

The demand for mission-critical energy storage solutions is intensifying, particularly in sectors requiring an uninterrupted power supply, such as data centres and healthcare facilities. The U.S. battery energy storage system market is anticipated to witness a CAGR of 30.5% from 2024 to 2030, reaching USD 4.4 billion by 2030 (Grand View Research, 2023). This surge is driven by the need for reliable backup power and the integration of renewable energy sources into critical infrastructure.

Renewable Energy Industry

The renewable energy sector is undergoing rapid expansion. In 2024, the United States added 48.2 gigawatts of solar, wind, and battery storage capacity, a 47% increase from the previous year (The Guardian, 2025). Declining costs and supportive policies like the Inflation Reduction Act 2022 propel this growth. Globally, China has made significant strides, adding clean energy generation in the first half of 2024, equivalent to the entire electricity output of the United Kingdom for the previous year (The Guardian, 2024).

Electric Vehicle Industry

The EV market is expanding swiftly. In 2023, electric cars accounted for approximately 18% of all vehicles sold globally, up from 14% in 2022 (International Energy Agency, 2024). Projections indicate that by 2024, 25% of all new passenger car registrations will be electric, surpassing 17 million units in sales worldwide (GreenMatch, 2024). This trend is supported by technological advancements, increased consumer acceptance, and policy incentives to reduce carbon emissions. These industries are experiencing robust growth, driven by technological innovation, policy support, and a global shift towards sustainable energy solutions.

Extracted from Alexander Melville Chief Executive Officer Tropical Battery Company Limited (TROPICAL) – Interim Financial Statements For The First Quarter Ended December 31, 2024

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Corporate Movements: Margaret Campbell Appointed CEO of GKMS Group; Lee-Anne Bruce Named COO

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4 weeks ago

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March 5, 2025

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GraceKennedy Limited (GK) is pleased to announce leadership changes at GraceKennedy Money Services (GKMS) as part of its ongoing succession plan and strategic talent development and deployment.

Effective April 1, 2025, Margaret Campbell will assume the role of Chief Executive Officer (CEO) of the GKMS Group. Campbell, who has worked with GKMS for over 25 years, has served as its Chief Operating Officer (COO) since 2020. She joined GKMS in 1996 and has held several leadership roles during her tenure including, Financial Controller, Chief Financial Officer (CFO), and Country Manager for GKMS Jamaica. A Fellow Certified Chartered Accountant, Campbell also holds an MBA in Finance from the University of Manchester and serves on several GK subsidiary boards. She is also the current President of the Jamaica Money Remitters Association.

Frank James, Group CEO of GraceKennedy, expressed confidence in Campbell’s leadership, stating, “Margaret has demonstrated strong leadership and an unwavering commitment to providing exceptional value and convenience to our customers across Jamaica and the wider Caribbean, in keeping with our vision of being the number one Caribbean brand in the world. I have no doubt she will continue to drive GKMS forward.”

Grace Burnett, CEO of GKFG, added, “Margaret’s industry expertise and strategic approach make her the ideal person to lead GKMS into the future. Her experience and passion for operational excellence will be instrumental as GKFG continues to grow and evolve.” The announcement of Campbell’s appointment comes as Burnett, who has led GKMS since 2019, prepares to retire from GraceKennedy later this year.

Lee-Anne Bruce

Additionally, GraceKennedy has named Lee-Anne Bruce as the new COO of the GKMS Group, also effective April 1, 2025. Bruce holds a bachelor’s degree from the Frank G. Zarb School of Business at Hofstra University and is a Certified Anti-Money Laundering Specialist. With over a decade in senior leadership roles at GK, she has served as Group Chief Compliance Officer, Chief Risk Officer, and most recently, Chief Audit Executive. She began her career at GK in 2003, when she played a key role in GKMS’ expansion into the Eastern Caribbean.

Margaret Campbell, incoming GKMS CEO, welcomed Bruce’s appointment, stating, “Lee-Anne is no stranger to GKMS and her extensive experience and understanding of our business will undoubtedly be invaluable in her new role.”

In light of the leadership changes at GKMS, Judith Chung, Group Chief Compliance Officer & Senior Legal Counsel, will act as Chief Audit Executive of GraceKennedy Limited, while Jason Bailey, Head of Risk, will temporarily assume responsibility for the Compliance portfolio.

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