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Top 9 largest M&A deals in Vietnam 2022

Top 9 largest M&A deals in Vietnam 2022

Monday 09, 01 2023
In 2022, the merger and acquisition (M&A) market in Vietnam recovered remarkably, recording many large-scale transactions with the participation of domestic and international investors. Following are the top 10 most typical M&A events in 2022.

1. UOB Bank (Singapore) vs  Citigroup

Right at the beginning of 2022, Singapore United Overseas Bank (UOB) announced the acquisition of Citigroup's retail business in four Southeast Asian countries, Indonesia, Malaysia, Thailand and Vietnam for about S$4.915 billion (equivalent to 3.65 billion US dollars).

UOB, which already has a regional presence in Southeast Asia, said it will acquire Citigroup's unsecured loan portfolios, asset management and retail deposit businesses in four countries.

Vietnamcredit UOB Bank (Singapore) vs  Citigroup

UOB also said that the amount for the acquisition will be calculated based on the total insurance premium equivalent to S$915 million plus the net asset value of the retail segment when completed.

Citigroup is one of the first international financial institutions present in Vietnam, operating under the name First National City Bank in the period 1972-1975. In 1993, the bank re-established operations with its first representative office in Hanoi. It was also the first American bank licensed to establish a foreign bank branch with full functions and services in Hanoi in 1994.

In April 2021, Citigroup said it planned to stop retail banking in 13 markets across Asia and Europe, the Middle East and Africa, including Vietnam. Operations in these regions will be coordinated by Citigroup from four wealth management centers in Singapore, Hong Kong, the United Arab Emirates and London.

2. Vinachem vs Duc Giang Chemicals

In March 2022, Vietnam Chemical Group (Vinachem) sold more than 6 million shares of DGC, officially bringing its ownership rate in Duc Giang Chemical Group Joint Stock Company to 0%.

These shares account for 3.53% of Duc Giang Chemical's capital. Previously, Vinachem successfully sold more than 9.1 million DGC shares during the period from November 8 to December 7.

Vietnamcredit Vinachem vs Duc Giang Chemicals

3. MWG vs Erajaya Corporation

On March 15, 2022, Mobile World (MWG) announced the official cooperation with PT Erafone Artha Retailindo (Erafone), a subsidiary of Erajaya Group to establish a joint venture PT Era Blue Elektronic (branded Era Blue ).

MWG operates a network of more than 3,000 stores, including (about 1,000 stores and accounts for more than 50% of the nationwide mobile phone retail market share); Dien May Xanh (over 2,000 stores and accounting for more than 40% of the national electronics retail market share); Bluetronics - the largest retail chain in the field of mobile phones and consumer electronics in Cambodia with 50 stores.

Vietnamcredit MWG vs Erajaya Corporation

Meanwhile, PT Erafone Artha Retailindo is the leading retailer of technology products in Indonesia - operating a network of about 1,200 retail stores across Indonesia, providing telecommunications equipment, tablets, laptops and other products in the same ecosystem.

In November, Era Blue opened its first store. As expected, this chain will be concentrated in some major cities of Indonesia.

The Era Blue joint venture marks an important step in MWG's overseas development strategy and is expected to make a positive contribution to prolonging the growth chain in the future.

4. Shinhan (Korea) vs Tiki Global

In early May 2022, Korea's second largest bank, Shinhan Financial Group, announced its decision to acquire a 10% stake in the e-commerce company Tiki. The group said that its two units, Shinhan Bank and Shinhan Card, will hold 7.44% and 2.56% shares of Tiki, respectively.

Vietnamcredit Shinhan (Korea) vs Tiki Global

The group also considers investing a total of $40 million in Tiki, which may include repurchasing existing shares.

With a resource of 20 million users on Tiki, Shinhan Financial expressed its expectation to combine resources to create explosive growth in many fields, such as diversifying customer touchpoints, improving ability credit rating capabilities thanks to the use of different data sources, and rapid adaptation to the digital environment.

5. CVC Capital Partners vs Phuong Chau Group

In May 2022, the Department of Competition and Consumer Protection received a complete and valid economic concentration notice from Viet Care Company Pte. Ltd., Phuong Chau Investment and Trading Joint Stock Company and Ms. Nguyen Thi Ngoc Ho.

Accordingly, Viet Care Company Pte. Ltd. planned to buy shares of Phuong Chau Investment and Trading Joint Stock Company from Ms. Nguyen Thi Ngoc Ho, equivalent to 60% of Phuong Chau's share ownership rate. After completing the expected transaction, Viet Care Company Pte. Ltd. became a major shareholder of Phuong Chau Company with a share ownership rate of 60%.

Vietnamcredit CVC Capital Partners vs Phuong Chau Group

Viet Care Company Pte. Ltd is a subsidiary of Viet Care Holding Ltd (Singapore) operating in the field of capital investment and is controlled by CVC Capital Partners SICAV-FIS S.A (referred to as CVC). CVC is a privately held company operating in the field of investment consulting, or investment management on behalf of a number of funds and platforms that invest in a variety of industries mainly in Europe, USA, Asia – Pacific.

6. Hoang Anh Gia Lai vs Dong A Pharmaceutical Company

At the end of May 2022, Hoang Anh Gia Lai Joint Stock Company (HAGL) approved the capital contribution to establish Bapi Hoang Anh Gia Lai Joint Stock Company (Bapi HAGL).

According to registration, Bapi HAGL's main business activities are buying and selling food technology, fresh and frozen vegetables and fruits, meat and meat products.

Vietnamcredit Hoang Anh Gia Lai vs Dong A Pharmaceutical Company

The company has a charter capital of VND 50 billion, in which, Hoang Anh Gia Lai contributes VND 27.5 billion, equivalent to 55% of the capital.

In addition, Bapi HAGL also has 2 other founding shareholders including: Dong A Pharmaceutical Trading Co., Ltd. contributing VND 20 billion (accounting for 40% of charter capital) and Ms. Hoang Thi Kim Nhung contributing VND 2.5 billion (equivalent to 5% of charter capital).

7. Novaland vs Warburg Pincus

In early June 2022, Novaland Group announced to receive an investment of $250 million from an investment fund group led by Warburg Pincus.

Warburg Pincus has more than $80 billion in total assets under management (AUM) and a portfolio of more than 245 companies across different stages of development, sectors and geographies.

Vietnamcredit Novaland vs Warburg Pincus

The $250 million raised will be allocated to increase the land bank and develop Novaland's projects in strategic locations, taking advantage of the gradually improving infrastructure in the South of Vietnam. This is also Novaland's next successful large-scale capital raising with international investors in less than a year since the issuance of international convertible bonds listed on the Singapore Stock Exchange in July 2021.

8. Nova Consumer vs Sunrise Foods Co., Ltd.

In the second quarter of 2022, Nova Consumer completed the M&A deal with Sunrise Foods Co., Ltd., thereby owning Anco Family Food. This is also an enterprise with a nationwide distribution system with 80,000 traditional retail points and more than 4,000 selling points at supermarkets.

Vietnamcredit Nova Consumer vs Sunrise Foods

This successful deal marks Nova Consumer's complete step into the 3F chain (Feed, Farm, Food) to produce high quality, safe food to consumers. This strategy helps Nova Consumer to be independent in inputs, close the production chain and avoid external influences, control the origin and quality of livestock inputs, and at the same time ensure the quality outputs. Due to the closed production model, Nova Consumer is able to maximize the company's profit margin, while creating leverage and growth momentum for other businesses.

9. The Sherpa Co., Ltd (belonging to Masan Group) vs Phuc Long Heritage.

The Sherpa Co., Ltd (indirectly owned subsidiary of Masan) purchased an additional 10.8 million ordinary shares, equivalent to 34% equity interest of Phuc Long Heritage Joint Stock Company on August 1st. The deal is worth about VND 3,617 billion.

Vietnamcredit Masan Group vs Phuc Long Heritage

This is the third time Masan Group has poured capital into Phuc Long tea and coffee chain, thereby increasing equity interest to 85%. In total, the group has invested VND 6,453 billion in this beverage chain, with a value of about VND 10,640 billion in the latest funding round.

Source: vietnamfinance

Compiled by VietnamCredit

Vietnam Economy

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