The 15 biggest M&A deals 2009-2018

With a price tag of nearly $5 billion, ThaiBev’s takeover of Sabeco last year is Vietnam’s biggest M&A deal ever, Photo: Le Toan

ThaiBev and Sabeco

On December 18, 2017, Vietnam Beverage (49 per cent of which is owned by ThaiBev) won an auction to acquire more than 343.66 million Sabeco shares, equivalent to 53.59 per cent of the company’s stake, at VND320,000 ($14.16) per share. This brought the deal value to nearly $5 billion.

This is the largest share sale ever in Vietnam last year.

After the transaction, Vietnam Beverage officially became Sabeco’s parent company and holds a controlling stake in the company.

GIC and Vinhomes

This April, Singaporean sovereign wealth fund GIC Private Ltd. announced that it will invest about $1.3 billion into Vietnamese giant Vingroup and related entities for its real estate arm ahead of its market debut.

Notably, GIC will purchase ordinary shares and extend a debt-like instrument to the subsidiary of Vingroup, namely Vinhomes, subject to the satisfaction of mandatory regulatory and other conditions. The combined value of the investment and debt instrument is approximately VND29.5 trillion ($1.3 billion).

Central Group and Big C

In April 2016, Thailand’s Central Group became the new owner of Groupe Casino’s Big C Vietnam after paying $1.14 billion to take over a network of 43 stores and 30 shopping centres under the Big C brand.

According to the press release on the deal, Central Group, in partnership with Vietnam’s Nguyen Kim Group, continues Big C Vietnam’s strategy, particularly concerning the supply of goods produced in Vietnam for Big C stores.

Singha, Masan Consumer, and Masan Brewery

In late December 2015, Masan Group and Singha Asia Holding Pte., Ltd. signed an agreement to form a strategic partnership. Upon investing $1.1 billion, Singha owns 25 per cent of Masan Consumer Holdings and 33.3 per cent of Masan Brewery. Masan Consumer Holdings owns the remaining 66.7 per cent of Masan Brewery.

The balance of the $450 million investment package was transferred to raise the ownership rate of Singha at Masan Consumer Holdings to 25 per cent from 14.3 per cent.

In January 2016, Masan announced the receipt of its first investment from Singha, worth $650 million. Of the amount, $50 million went to hold 33.3 per cent stake at Masan Brewery. The remaining $600 million was to retain 14.3 per cent of the stakes at Masan Consumer Holdings, which used the investment to lift Masan Group’s holding rate at Masan Consumer from 77.8 to 96.7 per cent.

TCC Holdings and Metro Cash & Carry Vietnam

In early 2016, Thailand’s TCC Holdings, the largest investor in Berli Jucker PCL (BJC), completed the purchase of Metro Cash & Carry Vietnam from German Metro Group. TCC thereby acquired Metro Group’s complete wholesale operations in Vietnam, including all 19 wholesale markets and the related real estate portfolio for an enterprise value of €655 million ($711 million).

One year later, in January 2017, TCC officially announced rebranding Metro Cash & Carry Vietnam to MM Mega Market Vietnam.

Bank of Tokyo-Mitsubishi UFJ and VietinBank

In December 2012, Bank of Tokyo-Mitsubishi UFJ (BTMU), the core retail and commercial bank arm of Mitsubishi UFJ Financial Group, Inc., agreed to buy a 20-per-cent stake in VietinBank, one of the leading state-owned commercial banks in Vietnam, for VND15.5 trillion ($685.84 million), at the unit price of VND24,000 ($1.06).

This transaction was the largest-ever M&A transaction in the Vietnamese banking industry to date and a milestone for VietinBank after its equitisation in 2008, enhancing the bank’s financial capabilities and securing stable long-term funding for the bank’s development plan, and raising VietinBank’s corporate profile with expected benefits from BTMU’s global expertise.

Mizuho and Vietcombank

In September 2011, Vietcombank, the nation’s largest listed bank by market value, completed its four-year search for a strategic foreign investor by clinching a deal to sell a 15-per-cent stake for $567.3 million to Mizuho Corporate Bank, Ltd. This Japanese bank bought 347.6 million new shares in Vietcombank for VND34,000 ($1.50) apiece.

As part of the deal, Mizuho became Vietcombank’s only strategic foreign partner and provided the local institution with technical services to improve its business performance, including sending Japanese experts to Vietnam, training Vietcombank staff, and offering business opportunities.

Siam City Cement and LafargeHolcim

Last year, Siam City Cement, which is the second-largest cement group in Thailand, spent $524 million buying 65 per cent of LafargeHolcim Vietnam, showcasing its strong interest in the Vietnamese cement market. After the transaction, Holcim Vietnam was re-branded as Insee Cement.

This deal was recognised as the Best Acquisition Deal at the Vietnam M&A Forum 2017.

Fraser and Neave Ltd., Vinamilk, and SCIC

In mid-December 2016, Fraser and Neave (F&N) spent $500 million purchasing nearly 80 million shares in Vietnam Dairy Products JSC (Vinamilk), equivalent to 5.4 per cent of the dairy firm’s stakes.

After the auction, F&N increased its holdings in Vinamilk to 16.35 per cent and became the second-largest stakeholder, behind SCIC with 39.33 per cent.

It was recognised as the Investment and Private Equity Deal of the Year at Vietnam M&A Forum 2017.

TTCS and Bien Hoa Sugar

In 2017, Thanh Thanh Cong Tay Ninh Sugar JSC (TTCS) acquired Bien Hoa Sugar JSC to create the largest sugar producer in Vietnam and protect Vietnam’s sugar position in the home market.

TTCS issued nearly 304 million shares to convert all outstanding shares of Bien Hoa Sugar at a ratio of 1:1.02. In other words, each share of Bien Hoa Sugar was equal to 1.02 shares of TTCS.

After the merger was completed, Bien Hoa Sugar was renamed Thanh Thanh Cong Bien Hoa-Dong Nai Sugar Co., Ltd. to mark TTCS’s sole ownership of the company.

The merger, valued at $475 million, took place as Vietnam was losing its biggest sugar consumer, China, and Vietnamese sugar also struggled against Thai sugar on the domestic market.

VIPD and Vincom Centre A

In March 2013, Vietnam Infrastructure and Property Development Group Corporation (VIPD) completed the purchase of Vincom Centre A Ho Chi Minh City from Vingroup for $470 million.

The deal was completed after the two parties had signed a capital transfer agreement one month earlier.

The centre, situated in one of the most attractive locations in Ho Chi Minh City, is the most luxurious property in the city. Vincom Centre A is housed in a French-style building connected to The Continent Hotel.

Mondelez International and Kinh Do

In August 2016, Mondelez officially became the owner of Kinh Do after buying the remaining 20 per cent stake in Kinh Do’s snack unit for $90 million.

Previously, in November 2014, Mondelez had bought 80 per cent of Kinh Do for $370 million and formally launched its activities in July 2015, following Kinh Do’s official withdrawal from the snack business. After the deal, the Cadbury and Oreo maker changed the brand name to Mondelez Kinh Do.

Warburg Pincus and Techcombank

In March this year, Techcombank announced that global private equity firm Warburg Pincus would invest $361 million into the bank, subject to local regulatory approval.

As the pre-eminent private equity investor in Vietnam, this transaction–to be managed by two separate legal entities under Warburg Pincus–will represent the largest-ever private equity investment in Vietnam and brings Warburg Pincus’ total commitment in the country to over $1 billion.

JC&C and Vinamilk

In November 2017, Singapore’s largest automotive group, Jardine Cycle & Carriage Ltd. (JC&C), announced that its wholly owned subsidiary Platinum Victory Pte., Ltd. had completed the purchase of 80.28 million Vinamilk shares, representing approximately 5.5 per cent of the stakes in the company, in two back-to-back transactions. The deal’s value was estimated to be $319 million.

In July of this year, Platinum Victory acquired over 129,000 Vinamilk shares, raising its ownership to 10.62 per cent. The fund also registered to buy 14.5 million more shares, which would raise its ownership to 11.62 per cent. The transaction will take place between July 18 and August 16.

LienViet Bank and Vietnam Post Corporation

In 2011, LienVietBank signed a 50-year co-operation agreement with Vietnam Post Corporation to merge with Vietnam Postal Savings Service Company (VPSC), changing its name to Lien Viet Post Joint Stock Commercial Bank (LienVietPostBank). The total value of the deal was reported to be $317 million.