Vingroup, Masan make largest merger in Vietnam in 2019
The Hanoitimes - According to the agreement, Vingroup’s retail arm VinCommerce and its subsidiary VinEco would merge into Masan Consumer Holdings, the retail consumer business of Masan.
On December 3, Vietnam’s leading privately-run conglomerates Vingroup and Masan agreed to merge their some of their businesses to form the country’s largest retail group in Vietnam, said Vingroup in a statement.
According to the agreement, Vingroup’s retail arm VinCommerce and its veggie subsidiary VinEco would merge into Masan Consumer Holdings, the consumer business of Masan. Masan would take charge of the new company.
Vingroup would swap its stake in VinCommerce for that of the new company and become a stakeholder. Details of the deal are not revealed.
The two side are finalizing details for official signing. This is considered the largest business deal in Vietnam this year.
The new company would own VinCommerce’s network of 2,600 super markets and convenience stores of VinMart and VinMart+ across 50 provinces and cities in Vietnam, along with a customer base of millions.
Additionally, Masan is set to take over 14 hi-tech farms currently operated by VinEco.
“The merging would help Masan realize its target of becoming Vietnam’s top retailer and penetrate international markets,” said Truong Cong Thang, chairman of Masan Consumer Holding.
After the takeover, Masan Consumer Holding would continue to maintain the current management policies and benefits of VinCommerce and VinEco for the two latter’s employees, suppliers and customers, plus additional benefits from Masan.
In August, Vingroup transferred its entire shares at VinCommerce to VCM, its newly formed subsidiary, which was widely seen as a step in preparation for Masan’s acquisition of the arm.
In a letter to its employees, Vingoup’s executives said, after the deal, they would focus all resources for the industrial and technology sectors with two brands VinFast and VinSmart.
Masan Group Corporation, which is listed on the Ho Chi Minh City Stock Exchange, has a spate of subsidiaries include consumer goods producer Masan Consumer Holding, lender Techcombank, meat business Masan MEATLife, and mining arm Masan Resources.
- IFC no longer major shareholder of Vietinbank
- Vietnam expects Japan to be the best investor
- American companies have interest in Vietnam’s continued success: AmCham
- Vietnam named most promising Asian investment destination in 2020 for Japanese firms
- US Development Finance eyes to invest in Vietnamese enterprises
- Vietnam’s Kite Air set to take off in Q2
- Vietnam needs a new filter for better foreign investment inflow
- State-run Vietnam Rubber Group gets green light to list on HoSE
- Masan holds 83.74% stake in Vingroup’s retail arm after merger
- Singapore’s GP Batteries increases stake-holding at Hanoi-based battery firm to 49%
G4 Ambassadors convey Tet wishes and gender equality message
Five Tet theme picture-taking hotspots in Hanoi
Green transportation - comprehensive solution to Hanoi’s air pollution
Overseas Vietnamese are an inseparable part of homeland
Hanoi expects businesses' greater contributions to agricultural sector: Mayor
Debt maturity in 2020 – 2021 to put pressure on Vietnam’s state budget
Bidding farewell to the Kitchen Gods, Vietnamese people offer them red carps
Vietnam targets to have 100,000 digital firms by 2030
Archbishop of Hanoi extends Tet greetings to municipal government