Thailand's BJC plans full acquisition of wholesale retailer MM Mega Market Vietnam for $723 mln

Thai conglomerate Berli Jucker Public Company Limited (BJC) plans to acquire wholesale retailer MM Mega Market (Vietnam) Company Limited through an indirect transaction estimated at THB22.5 billion ($723.71 million), according to its filing to the Stock Exchange of Thailand.

BJC, through its subsidiary C-Distribution Asia (CDA), will purchase all 921.8 million ordinary shares in TTC Land International (Singapore) (TCCLI) from Golden Land international (GLI) at a price of THB24.41 ($0.78) each, according to its disclosure.

TCCLI is a corporate entity associated with the Thai-owned TCC Group. It wholly owns MM Mega Market Vietnam (MMVN), a major wholesale distributor focusing on serving professional business customers. MMVN is a strategic brand of TCC in Vietnam with a total of 30 branches across the country.

Upon completion of the acquisition, TCCLI and MMVN will become subsidiaries of the Thai conglomerate.

The acquisition of MMVN will enable BJC to expand into Vietnam’s fast-growing market, establish comprehensive retail and wholesale distribution channels, and improve operational efficiency via business integration, the Thai firm said in its statement.

In addition, the deal is expected to strengthen the company’s regional bargaining power, diversify its product range, including private label brands, and leverage MMVN’s digital platforms to enhance market reach and collect valuable consumer data, it stressed.

To fund the transaction, BJC plans to use loans from financial institutions and/or proceed from issued debentures, ensuring that the financing aligns with its liquidity management and investment plans. The company expects the financing costs to remain close to current levels and assures that the deal will not affect its normal operations or breach any existing financial covenants.

BJC board will convene an extraordinary general meeting on February 13 to decide on the acquisition. If approved, the deal is set to be completed in the second quarter of this year.

MM Mega Market Vietnam currently derives about 55% of its revenue from the B2B segment, with the remaining 45% coming from B2C customers. The company aims to lift the B2B contribution to 60% by 2030. It plans to expand its retail network from 30 outlets in 2025 to 54 by 2030, combining the rollout of both large-format stores and smaller-scale models.

Under the plan, after-tax profit is projected to more than double, rising from THB580 million ($18.66 million) in 2025 to around THB1.2 billion baht in 2030.