GELEX named among companies with most notable M&A deals for 2024

GELEX has transferred its renewable energy projects to Sembcorp Industries, a subsidiary Sembcorp Group. The two sides signed an investment cooperation agreement last year, wherein Sembcorp Industries would either acquire shares or inject capital into GELEX’s operational power projects. GELEX has so far completed the transfer of three out of four renewable energy projects.

GELEX Group representative received the honour of Enterprise with notable M&A deals in 2023-2024

Sembcorp Industries is an integrated urban and energy solutions provider headquartered in Singapore and is one of the Top 30 companies listed on the Singapore Stock Exchange. Temasek Holdings, a Singaporean state-owned multinational investment firm, holds 49 per cent of Sembcorp capital.

"This is not just a simple financial deal. GELEX is only divesting part of its investment portfolio to find and select partners to accompany us on our next projects. We are looking forward to working with capable investors. The cooperation with Sembcorp will help GELEX maximise its potential as we support each other to develop in the Vietnamese and international markets andopen up new opportunities in the future," said a GELEX representative.

The deal takes place during a period of gradual recovery for the global economy, while the merger and acquisition (M&A) market in Vietnam is expected to be active again after a period of stagnation.

According to ASART Deal Advisory, in the first 10 months of 2024, there were about 174 transactions, totalling approximately $2 billion in disclosed value. While the number of deals grew by around 21 per cent on-year, the total deal value declined by 54 per cent, showing a significant decline from the previous year.

This reduction can be attributed to global economic headwinds, the prolonged high interest rate of the US dollar, and investor hesitancy amid lingering uncertainties. Investors, though still active, are now prioritising strategic, value-driven deals over speculative ones.

The M&A market in Vietnam is becoming an attractive destination not only for international investors but also for domestic ones. Large enterprises are taking advantage of the opportunity to expand their networks and seek strategic partners.

According to KPMG's report, the percentage of M&A deals involving domestic enterprises in 2024 will reach 40 per cent, significantly higher than in previous years. This clearly reflects the maturity in strategic thinking of Vietnamese enterprises. M&A has become an important tool to help businesses innovate technology, expand scale, develop products and increase competitiveness in the international market.

Companies with notable M&A deals in 2024 include VPBank's sale of 15 per cent of shares to SMBC; Sycamore Company's acquisition of the Tan Thanh Binh Duong urban and housing project from Becamex IDC; and SeABank's transfer of its finance company to AEON Financial Service. Meanwhile, Tasco has finalised an agreement with Mitsui & Co., Ltd that designates Mitsui as the strategic shareholder of Tasco Auto, a subsidiary of Tasco.

This is a positive signal for the economy, as domestic enterprises are becoming more proactive in seeking cooperation and merger opportunities, reaffirming the growing maturity and strength of the domestic business sector.

Honouring consulting firms with outstanding strategies and M&A deals The Vietnam M&A Forum 2024 held on November 27 in Ho Chi Minh City honoured 16 outstanding M&A consulting firms, three businesses with outstanding M&A strategies, and 15 other businesses with outstanding M&A deals for 2023-2024.

More vigorous 2025 in sight for M&A deals Although the total value of deals in Asia is the lowest in a decade, the first nine months of 2024 recorded improvement in merger and acquisition (M&A) transaction value in Vietnam – a situation which will be built upon next year.

Investors old and new take on M&As Competition in Vietnam’s merger and acquisition market will become fierce as foreign investors, including strategic and emerging ones, compete eagerly for potential targets.