Retail sector to lead M&A wave in Vietnam
VOV.VN - The consumer goods retail sector and related industries will lead the next merger and acquisition (M&A) wave in Vietnam, following recent developments involving Thai companies.
The areas related to the retail sector will attract the most M&A activity, said speakers while addressing a recent retailers’ business forum sponsored by the Vietnam Retail Association in Hanoi.
Already, a spate of large Thai retailers and consumer goods companies have been flocking to Vietnam, they said.
Most notable is the recent announcement by French supermarket operator Groupe Casino that it will now likely sell its Vietnam and Thailand operations.
In a prepared statement, Groupe Casino said it is proceeding with a sale “in the best interests of the company and its shareholders” of both its Big C Vietnam and Thailand businesses.
It is not clear if a sale is contingent upon both businesses being bought by the same buyer, but that certainly appears to be more than likely the case, said speakers at the business forum.
Groupe Casino holds a 58.6% stake in the total paid-up capital of both Big C Vietnam and Thailand, with the balance controlled by the original founder, Central Group, also based out of Thailand.
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There had originally been rumours the Central Group was planning to reacquire control of Groupe Casino’s Big C stores in Vietnam, said the speakers.
However, that doesn’t appear to be the case, as a Vietnamese representative of the Thai conglomerate reportedly has said nothing has happened from its side. “They [Big C] are approaching retailers in the market to make the selling offer.”
“That is a normal process.”
A source close to Central Group’s activities in Vietnam said a deal between the Thai retailer and electronics appliance chain Pico had failed, prompting speculation that a Central Group takeover was on the cards.
Earlier last year it had acquired 49% of Nguyen Kim, a major electronics retailer in Vietnam.
Meanwhile, Berli Jucker is also eyeing Big C Vietnam after the billionaire Charoen Sirivadhanabhakdi-backed, listed company dropped its bid for Metro Cash & Carry in Vietnam.
On January 7, the German group announced it had sold the Vietnam-based wholesale unit to TCC Holding, another business of Sirivadhanabhakdi, for US$711 million (655 million euro).
Meanwhile, Singapore's Dairy Farm Group, the Republic of Korea (RoK)'s Lotte Group and Japanese retail group Aeon Co Ltd have also expressed interest in acquiring Groupe Casino’s stake in Big C Vietnam and Thailand.
