How Masan employs dealmaking to build its consumer-retail platform

Masan has carried out numerous notable merger and acquisition (M&A) transactions, including acquiring over 98 per cent of Vinacafé Bien Hoa, controlling stakes in Net Detergent JSC and Quang Ninh Natural Mineral Water Co., Ltd., as well as Saigon Nutri-food JSC.

WinCommerce is now in a profitability phase, according to its owners

The group also acquired Sam Kim Co., Ltd., later rebranded as Masan Nutri-Science and subsequently Masan MEATLife. Other major deals include the purchase of the VinCommerce retail system (now WinCommerce) and a controlling stake in the Phuc Long Coffee & Tea chain.

However, Masan’s strategy is not to merely expand its portfolio. According to CEO Danny Le, acquisitions focus on integrating platforms that align with its overarching strategy, rather than simply chasing revenue or profit.

“Over the years, Masan has transitioned from a fast-moving consumer goods company into a comprehensive consumer-retail ecosystem under its “Point of Life” strategy, designed to meet end-user needs holistically,” Le said.

At its AGM in April, Masan announced plans to scale back M&A activities to focus on optimising its business operations and deepening its core consumer-retail model. Masan’s recent deals have centred on either bolstering resources to serve consumer growth opportunities, increasing ownership in key businesses, or gradually divesting from non-core operations.

Masan Group was honoured at the HR Asia Awards 2024 as one of the best companies to work for in Asia

In October 2023, Masan announced an equity investment of at least $200 million from Bain Capital. By December, Bain had increased its total equity investment to $250 million.

This investment, completed in April 2024, demonstrates confidence in Vietnam’s market and Masan’s consumer-centric strategy, despite challenging financial market conditions.

The capital injection strengthens Masan’s financial position, enabling it to better seize opportunities to serve Vietnamese consumers in sectors such as groceries, financial services, and other daily needs. The group’s focus remains on innovative solutions and optimising its consumer-retail platform to capitalise on Vietnam’s “golden consumption era”.

Since 2007, Masan has mobilised $5 billion in equity and debt, attracting investments from prominent funds such as KKR, TPG, and SK Group.

In May this year, Masan High-Tech Materials, a subsidiary of Masan Group, signed a framework agreement with Mitsubishi Materials Corporation. Under the agreement, the latter will acquire all of Germany’s H.C. Starck Holding from Masan Group. The deal includes a long-term offtake agreement for ammonium paratungstate and tungsten oxide.

Masan retains ownership in Nyobolt, a UK-based fast-charging lithium-ion battery technology company, and rights to potential monetisation of blackmass technology intellectual property developed by HCS.

Meanwhile, Masan continues to strengthen its core consumer-retail operations. In September, it acquired a 7.1 per cent stake in WinCommerce from SK Group. WinCommerce, Vietnam’s largest modern retail operator, has been a cornerstone of Masan’s strategy to expand its retail footprint and increase control over its core business.

Masan notes that WinCommerce has entered a profitability phase, with positive net profit after tax (NPAT) reported for the first time since the pandemic. It posted revenues of VND8.6 trillion ($338.5 million) and NPAT of VND20 billion ($800,000) for Q3, providing a clear pathway to sustainable and increasing profitability.

By identifying a profitable retail model, Masan has resumed store expansion, aiming for 4,000 locations by the end of 2024. The group remains focused on delivering sustainable growth while contributing to Vietnam’s modern trade market.

Masan’s M&A strategy and operations reflect a deliberate focus on building a consumer-retail ecosystem that aligns with Vietnam’s evolving market dynamics.

By divesting non-core assets and optimising its core businesses, the group is positioning itself as a leader in Vietnam’s modern consumption era.

Masan brand CHIN-SU accompanied the Mountainous Underprivileged Student Fund to bring nutritious meals to children

Masan Group signs agreement with Canadian credit agency Export Development Canada (EDC), Canada’s export credit agency, and Masan Group announced the signing of an MoU on October 18 to advance trade in key sectors of focus including agri-food, consumer goods and mining.

Masan reports third quarter earnings of $27.6 million Masan Group Corporation on October 23 released its unaudited management accounts for the third quarter with earnings up 1,350 per cent on-year.

Are Masan Consumer shares a bargain? Masan Consumer’s MCH shares have more than doubled this year, reaching a historic high of over $8.28, raising whether they remain a good investment for new buyers.