Morinaga Milk Industry Company, a popular Japanese formula milk producer, has spent VND105.98 billion ($4.5 million) on acquiring a 51% stake of Morinaga Le May Vietnam JSC, a major distributor of Japanese goods in Vietnam.
After the transaction, Morinaga Milk will hold 333,061 shares at the Vietnamese firm, equivalent to a voting right of 51% and making Morinaga Le May its consolidated subsidiary from May 31.
The move is part of Morinaga Milk’s 10-year vision to become a global company with overseas business sales ratio of at least 15% by March 2029. The Japanese firm started exporting its infant and toddler milk to Vietnam via a local agent in 2010 and the sale volumes have reached an average annual growth of 33%, according to company data.
Morinaga Milk added that the market for infant and toddler milk in Vietnam is developing fast with an average annual growth rate of 8% in 2010-2021, while the market size has more than doubled to 110,000 tons in the period. The market is expected to continue expanding thanks to Vietnam’s pacey economic growth.
Earlier in November 2022, Morinaga Milk officially started production and sales in Vietnam via its subsidiary Elovi Vietnam JSC, after acquiring the firm in June 2021. Morinaga targets to make a revenue of VND333 billion ($14.13 million) from its Vietnam operations in 2024.