Just recently, SATS announced its intent to acquire BAC; a dominant caterer in Malaysia. In my Sleeping Dragon post, I mentioned that SATS has an excellent reach and market share in the industry. In-flight caterer/Ground Services - Market Share (*New) Malaysia - 95% of In-flight catering Singapore - 80% Vietnam - 75% Maldives - 70% India - 67% China - 60% Japan - 50% in Narita, 40% in Haneda Hong Kong and Taiwan - 30% Macau - 100% (only in-flight caterer) With that, SATS further strengthened its footing in the region. BAC's major customers includes Malaysian Airlines, Air Asia and Cathay Pacific. Risks However, there's also risks to think of. 1. Currency risk 2. Malaysian Airlines ailing business 3. Malaysia's air traffic growth However, I'm not overly concerned with those, bearing in mind that the profits of BAC would constitute less than 2% of SATS' total profits. The financial risks ......