Vietnam's M&A market signals rising activity

The mergers and acquisitions (M&A) market in Vietnam is showing signs of resurgence in the final months of the year, with multiple companies announcing successful deal closures.

Lately, major players in the market have stepped into the spotlight with notable transactions.

One such development is Kido Group Corporation, which is steadily increasing its ownership stake in Hung Vuong Corporation, ultimately resulting in the control of Hung Vuong Plaza.

By the end of August, Kido finalized the deal, boosting its ownership in Hung Vuong Corporation to 75.39%. The move has transformed the company into a subsidiary of Kido, with Hung Vuong Plaza now under KIDO's ownership.

Another significant deal that has captured widespread interest is the recent announcement of Mitsui & Co's official entry as a strategic shareholder in Tasco Auto, a subsidiary of Tasco.

While the exact value remains undisclosed, this transaction is poised to deliver a substantial boost in the fields of information technology and transportation.

In the logistics arena, Viconship recently completed the acquisition of Nam Hai Dinh Vu Port with an investment of nearly VND399.99 billion ($16 million) out of Nam Hai Dinh Vu Port JSC's total charter capital of VND400 billion, equating to a 99.99% ownership stake in the company.

One of the prominent names in the M&A market is industry giant Novaland.

Recently, the company divested its entire stake in Huynh Gia Huy Joint Stock Company for a nominal amount of VND1.9 billion. This transfer price excludes the value of utility assets and any outstanding debt obligations.

In the first half of the year, a series of significant transactions took place.

For instance, Nishi-Nippon Railroad (Japan) acquired a 25% stake in the Paragon Dai Phuoc project and Tripod Technology Corporation bought an expansive 18-hectare industrial land plot from Sonadezi Chau Duc Shareholding Company, while Kim Oanh Group entered into a partnership with Japanese investors to develop a 50-hectare residential area.

M&A activities surge at year-end

While real estate M&A transactions commanded significant attention in the first half of the year, recent trends indicate a shift towards larger deals in the retail sector.

Anticipated M&A deals involving industry giants are expected to inject dynamism into the market in the closing months of the year.

In early September, Masan Group unveiled plans to invest $200 million to acquire a 7.1% stake in WinCommerce from SK Group. WinCommerce operates a retail chain comprising over 130 WinMart supermarkets and more than 3,600 WinMart+/WIN mini-supermarkets.

Likewise, Sabeco announced intentions to allocate over VND800 billion for the acquisition of Saigon Binh Tay Beer Group JSC (Sabibeco Group).

A successful deal would elevate Sabeco's stake in Sabibeco to 59.6%, equivalent to nearly 52.2 million shares, establishing Sabeco as the parent company of Sabibeco.

Following the acquisition of Nam Hai Dinh Vu Port, Viconship is now looking to divest from Dinh Vu Petroleum Services Port JSC. The company aims to sell its entire 8.82 million shares in Dinh Vu Petroleum for a minimum transfer value of VND 88.2 billion.

Multiple deals were unveiled in the first week of September, including ASKA Pharmaceutical Co., Ltd (Japan) expressing interest in acquiring a 35% stake in Ha Tay Pharmaceutical JSC.

Trang Bui, CEO of Cushman & Wakefield Vietnam, highlights industrial real estate as a focal point for foreign investors in M&A after Singapore's Mapletree Logistics Trust recently invested SGD68.4 million (over $50 million) to purchase two Grade A warehouses in Binh Duong and Hung Yen provinces.

Additionally, CapitaLand Investment plans to inject an additional $70-110 million into Vietnam over the next two years for industrial zone development or acquisitions.

Trang also shared insights on the bustling retail segment.

In early February, Central Pattana, a subsidiary of Thailand's prominent retail conglomerate Central Group, established CPN Global Vietnam Company Limited in Vietnam, Trang told laodong.vn.

This new entity, with a charter capital of VND20 billion, focuses on real estate operations.