Top 10 Merger and Acquisition deals in 2021

January 04, 2022 - 08:24
Even though business activities were disrupted nationwide for many months in 2021, due to social distancing orders to prevent the outbreak of COVID-19, the number of successful merger and acquisition (M&A) deals rose compared to 2020.

HÀ NỘI — Even though business activities were disrupted nationwide for many months in 2021, due to social distancing orders to prevent the outbreak of COVID-19, the number of successful merger and acquisition (M&A) deals rose compared to 2020.

Statistics from KPMG Việt Nam showed that in October 2021, the M&A market attracted US$8.8 billion, up 17.0 per cent over the same period of 2020 and 13.7 per cent compared to 2019.

Of which, 58 per cent of M&A transactions’ total value came from consumer staples, real estate and the financial sector. 

The proportion of M&A deals with Vietnamese enterprises as buyers increased to $1.6 billion.

Among the major deals completed, here are ten outstanding M&A deals of 2021.

Japan’s Sumitomo Mitsui Finance Group acquires 49 per cent stake in FE Credit

Representatives of VPBank and SMBC exchanged transaction completion certificates at the ceremony, transferring a 49 per cent stake of FE Credit. — VNA/VNS Photo

On October 28, VPBank officially announced that the bank had completed the sale of a 49 per cent stake in VPBank Finance Company (FE Credit) to SMBC Consumer Finance Company (SMBCCF), a subsidiary of Sumitomo Mitsui Finance Group (SMFG). 

VPBank signed a deal worth $1.3 billion last April.

Joined with SMBCCF, VPBank Finance Company will be renamed to VPBank SMBC Finance Company, with VPBank retaining 50 per cent of the company’s charter capital, while 1 per cent is held by another investor. 

SHB sells its financial consumer arm to Thailand bank

Do Quang Vinh - Director of Digital Banking Division and Deputy Director of SHB - and Seiichiro Akita - Krungsri President and CEO - signed an agreement to transfer 100 per cent of capital at SHB Finance. — Photo courtesy of SHB

At the end of last August, the Board of Directors of SHB approved the sale of 100 per cent of SHB Finance’s charter capital to Bank of Ayudhya in Thailand, commonly known as Krungsri.

While details of the deal were not disclosed, foreign media reported that Krungsri paid SHB about 5.1 billion baht ($156 million USD).

After the two parties fulfil certain conditions required under law, SHB will transfer 50 per cent of SHB Finance's charter capital to Krungsri and will transfer the remainder after three years.

Alibaba and Baring Private Equity Asia invest $400 million in The CrownX

Customers buying commodities at a Vinmart. — Photo Courtesy of Masan

Last June a consortium led by Alibaba Group and Baring Private Equity Asia bought a 5.5 per cent stake in newly issued shares in The CrownX for $400 million.

The CrownX is a retail consumer platform that consolidates Masan's interests in Masan Consumer Holdings and VinCommerce. The transaction valued The CrownX at $6.9 billion, equivalent to a value of $93.5 per share. After the issuance, Masan's ownership rate in The CrownX is 80.2 per cent.

SK Group purchases $410 million of VinCommerce’s shares

Last April, South Korea’s SK Group acquired a 16.26 per cent stake in VinCommerce for a cash consideration of $410 million.

Woncheol Park, representative director of SK South East Asia Investment, the SK Group subsidiary that is making the investment, said that he believes in the potential of Việt Nam’s online/offline retail sector and expect VinCommerce to play a vital role in its modernisation.  

The deal is part of SK’s broader strategy of investing in Việt Nam’s fast-growing sectors. This is another landmark transaction for SK and reaffirmation of its commitment to Masan Group and Việt Nam, he added. 

KKR pours $100 million in EQuest Việt Nam

Inside an office of EQuest Education Group. Photo

In early June, US global investment firm KKR announced an investment into Vietnamese educational services provider EQuest Education Group.

Focusing on four core segments including K-12 bilingual schools, tertiary and vocational institutions, English enrichment courses, and digital learning solutions, EQuest said the investment would help to support its expansion, aiming to provide local students with affordable access to world-class education.

THACO acquires South Korea’s Emart hypermarket in Việt Nam

Emart hypermarket in HCM City Gò Vấp’s District. — Photo courtesy of THACO

On October 9, 2021, THACO said it has completed the acquisition of South Korea’s Emart Inc’s hypermarket business in Việt Nam.

THACO will be responsible for operating, managing and expanding the Emart supermarket in Việt Nam, while the Korean retailer will send key personnel to Việt Nam to support the operation and supply private label products at competitive prices.

Emart expects to expand its retail chain to 10 stores in South East Asia by 2025.

At the annual general meeting this year, Trần Bá Dương, Chairman of THACO, said that Emart’s revenue in 2021 is expected to rise 10 per cent over 2020 to over VNĐ1.8 trillion. 

Masterise Group acquires Vinhomes’ property projects

The Vinhomes Grand Park project. — Photo courtesy of Vinhomes

Last July, Green City Development, a subsidiary of Vinhomes, said that it prepared to transfer two land lots under the Vinhomes Grand Park project to Masterise Homes, a member of Masterise Group.

The two land lots have a total area of 70,783 square metres, equivalent to more than 7 hectares.

The Vinhomes Grand Park project covers an area of 365 hectares, located 20-25 kilometres away from Hồ Chí Minh City, consisting of 71 high-rise buildings of 25 to 36 floors which provide 44,000 apartments for the market.

Bamboo Capital acquires 71 per cent stake of AAA

A customer talks to a receptionist of AAA Insurance. — Photo

On December 1, the Board of Directors of Bamboo Capital approved to purchase a 71 per cent stake in the insurance company AAA. 

The move received Ministry of Finance (MoF) approval for the acquisition on December 2. BCG Financial Joint Stock Company, a subsidiary of Bamboo Capital, was also allowed to purchase a 9.46 per cent stake of AAA. 

After the deal, the total ownership of Bamboo Capital is 80.64 per cent, replacing the Insurance Australia Group (IAG) as the largest shareholder in AAA Insurance.

Japanese bank Mizuho buys 7.5 per cent of Momo for $170 million

The Momo mobile app. — Photo

Japan’s Mizuho Bank sets to pay 20 billion yen ($170 million) to acquire a 7.5 per cent stake of M-Service, which operates Vietnamese e-wallet app Momo, Nikkei Asia report. 

Mizuho Bank would acquire the stake by the end of 2021 to leverage the Vietnamese smartphone payment company's retail business.

In 2011, Mizuho invested in Vietcombank. 

The acquisition deal is expected to strengthen their collaboration in the local’s retail market. 

Kido acquires 44.2 million shares of Vocarimex from SCIC

A customer buys a KIDO product at a supermarket. — Photo Courtesy of KIDO Group

Last November, Kido purchased 44.2 million shares of Vietnam Vegetable Oils Industry Corporation (Vocarimex), or 36.6 per cent of its stake, in an auction held by State Capital Investment Corporation (SCIC).

With Kido's winning bid price of VNĐ28,400 a share, the deal’s total value is worth nearly VNĐ1.3 trillion. 

After the deal, Kido officially raised its ownership rate in Vocarimex from 51 per cent to 87.29 per cent, while SCIC is no longer Vocarimex’s shareholder. — VNS