The
billion-dollar acquisitions of Thai billionaires have brought Thailand to
become a formidable force in M&A activities in Vietnam and Asia.
Big
C Vietnam has fallen into the hands of billionaire Tos Chirathivat – the boss
of Central Group (Thailand) from Casino Group (France) for 1.05 billion USD. In
2015, this group also spent about 100 million USD to acquire Nguyen Kim – the
leading retailer in the electronics market. Recently, the Group also spent 10
million USD to acquire the business segments in Thailand and Vietnam of Zalora
(belongs to Global Fashion Group of Rocket Internet Corporation).
Previously,
billionaire Charoen Sirivadhanabhakdi – owner of TCC Holdings (Thailand) spent
655 million Euros to buy 19 centers and relating real estates of Metro Cash & Cary
Vietnam. Also, Berli Jucker (BJC), a subsidiary of TCC Holdings also acquired
Family Mart Vietnam. Especially, along with the acquisition of Metro Cash &
Carry Vietnam, billionaire Charoen Sirivadhanabhakdi also through the Singapore
Beverage Group – Fraser & Neave (F&N) became the 2nd largest
shareholder in Vinamilk with 11.04% share. Currently, Thaibev which also
belongs to this billionaire is racing to buy 40% share in Saigon beer (Sabeco),
with a value of 1 billion USD.
In
fact, the trend that Thai businesses acquired businesses outside their national borders
is not new. In 2012, Siam Cement Group (SCG) of Thailand signed an agreement to
buy 85% share in Prime Group JSC (Vietnam) at the price of 7.2 billion Baht
(nearly 5,000 billion VND). This is also the biggest M&A deal in the field
of building materials in Vietnam so far.
In
the plastic industry, currently, SCG has invested in more than 20 Vietnam
plastic enterprises. Particularly, the most significant investment is to
buy 80% share in Tin Thanh Plastic Company, a top enterprise in the field of
plastic packaging of Vietnam. SCG also holds large shares in 4 companies
specialized in manufacturing plastic household – packaging in Vietnam, which
are Vietnam – Thai Plastchem Joint Venture, TPC Vina Plastic and Chemical, Minh
Thai and Chemtech Plastic Materials.
Currently,
SCG is also the 2nd largest shareholder in Tien Phong Plastics
and Binh Minh Plastics, just after State Capital Investment Corporation (SCIC).
Moreover, SCIC planned to divest from this two plastics companies. This will
create opportunities for Nawaplastic Industries to increase its shares in Tien
Phong Plastics and Binh Minh Plastics. SCG continues to seek opportunities to
invest in Vietnam’s plastic industry.
Most
recently, the Ton Poh Thailand Fund has spent 130 billion VND to buy 5.9
million shares of Hoang Huy Investment – Service Company, equivalent to 5.32%
of the charter capital of the company. In addition to Hoang Huy, Ton Poh
Thailand Fund also owns nearly 6% share of Cotec Construction Company.
An
open economic space will create significant opportunities for investment flows.
The formation of the ASEAN Economic Community (AEC) and the Trans-Pacific
Partnership Agreement (TPP), which expected to take effect from 2018, is the
impetus for investment flows into the country in this area. The race has
just begun for the countries, investors and Thailand businesses seem to hold
this game.
The
billion-dollar acquisitions of ambitious billionaires brought Thailand to
become a powerful force in M&A activity in Asia. According to experts, the
deal with the presence of Thai companies in theM&A market in Asia has increased
rapidly, just behind China, Korea and India.
In
particular, the market of more than 600 million people of AEC is considered as
a more stable market than most emerging markets
in the world. The growth opportunities for businesses here will be very
attractive, regardless of Thailand, Vietnam enterprises or from other
economies.
To
sum up, according to economic analysts, the increase of M&A activities will
be the obvious result due to the free trade between the countries in goods,
services and human resources.
ANT
Consulting is here to assist you from the outset; providing corporate
intelligence, risk advisory, management consulting services
that assist market entrance, and ensure efficient business start-up
operation. Our services are as following:
We
strive to save your cost by guiding you towards economical solutions that
comply with local legislation and procedures. We support you through early
logistic solutions and carry you through as your business grows. We aim to bridge the gap
between international best practices and local cultures and assist foreign
companies and organizations entering Vietnam market to overcome commercial
and regulatory issues.
We could be reached at
email: ant@antconsult.vn or
tel: +848 3520 2779 . To learn more about us, please visit
www.antconsult.vn
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