The Hanoitimes - Vietnam authority has reviewed the US$91.2 million deal between local paper firm Saigon Paper and Japan’s Sojitz.
The Vietnam Competition Authority under the Ministry of Industry and Trade has just concluded that the acquisition does not violate anti-trust law, after looking into a consulting application regarding the potential monopoly made by the deal.
Specifically, Sojitz‘s purchase of Saigon Paper via the stake transfer is not prohibited under Article 18 of the Law on Competition 2004 and notification was not required as mentioned in Article 20, as the two firms’ combined market share in 2016 and 2017 was below 30%, said the authority.
Packaging process at Saigon Paper' factory
The authority also affirmed that the deal can continue.
Sojitz reportedly spent some US$91.2 million, on the stake in Saigon Paper. Vietnam’s largest maker of tissue paper posts annual revenue of US$100 million, production capacity of 40,000 tons of residential-use paper and 230,000 tons of industrial paper.
According to Nikkei Asian Review, Sojitz will send six managers from Japan to help revamp the company's finance and accounting systems. The trading house will consider updating the manufacturer's production facilities as well.
The two firms will work together on recyclable wastepaper collection from industrial parks, logistics facilities and the Ministop convenience stores that the Japanese company helps operate.