M&As pick up pace in sectors from food to energy

In late September, Nutifood Nutrition Food JSC acquired a 51 per cent stake in Kido Foods, the owner of the Merino and Celano ice cream brands.

M&As pick up pace in sectors from food to energy, photo Kido Foods

This acquisition allows Nutifood to become the parent company, with Kido Group retaining the remaining stake. The deal marks Nutifood’s entry into the frozen food sector and helps complete its diverse product supply chain.

Tran Bao Minh, vice chairman of Nutifood’s Board of Directors, said, “The investment in Kido Foods allows Nutifood to extend its reach from the nutritional sector to the frozen industry. It also enables Nutifood to take advantage of Kido’s strong distribution network with hundreds of thousands of ice cream cabinets nationwide. This combination promises to expand Nutifood’s product ecosystem, especially targeting young and adult customers.”

According to Euromonitor, Kido currently holds a 44.5 per cent share of Vietnam’s ice cream market. Merino and Celano, which are the two leading brands, account for 24 and 19 per cent of the market, respectively.

Kido Foods operates two modern processing factories in Ho Chi Minh City and the northern province of Bac Ninh, equipped with advanced machinery imported from Europe and Japan to meet the growing demand for ice cream in Vietnam.

Nutifood, traditionally known for its dairy products, has been expanding its business beyond this core sector. It has invested in the coffee industry through Phuoc An coffee farm and in herbal products with Quasapharco. Additionally, Nutifood has ventured into international markets through joint ventures, such as Asahi-Nutifood in Japan and the Nutifood Sweden AB factory in Sweden.

Also in September, SUSI Partners, on behalf of the SUSI Asia Energy Transition Fund (SAETF), signed an agreement to acquire the 39MW Dam Nai wind farm from Norwegian renewable energy company Scatec. The farm, located in the south-central province of Ninh Thuan, will become a cornerstone asset for SAETF’s utility-scale renewable energy platform, Sustainable Asia Renewable Assets.

This acquisition also includes Scatec’s Vietnam-based operating company, enabling SAETF to expand further in the country. Dam Nai adds scale and provides access to the increasingly liberalised Vietnamese utility-scale renewables market, a company representative said.

In the same month, UK-based Cedo, one of Europe’s largest suppliers of private label household consumable products, announced the acquisition of Vinatic, a Vietnamese recycling operation.

Cedo CEO Thierry Navarre said, “This acquisition is a pivotal milestone in our strategic journey towards becoming one of the largest integrated circularity platforms for flexible plastic films. Vinatic’s expertise in plastic recycling significantly enhances our ability to give plastic waste a second life, furthering our commitment to sustainability globally.”

According to data from the Ministry of Planning and Investment, there were almost 2,500 capital contribution and share purchase transactions in the first nine months of 2024, totalling nearly $3.56 billion. Ho Chi Minh City led the country with over 1,700 transactions worth $1.19 billion.

Julien Curtet, partner at Index Partners, commented that Vietnam’s merger and acquisition (M&A) market is showing signs of improvement compared to 2023. Curtet identified three factors contributing to the subdued investment climate in early 2024: weakened consumer confidence, a real estate market in recovery, and political uncertainty following multiple leadership changes.

“However, there are positive signs in sectors like healthcare, telecom, and consumer retail,” Curtet said. “These sectors have attracted significant investment, including several large-scale deals in assets with strong fundamentals. Such transactions often signal a broader resurgence in M&A activity.”

Furthermore, unallocated capital in Southeast Asia has reached an all-time high of $18-20 billion, indicating that investors are ready to re-enter the market.

“As we move forward, we expect deal volumes to gradually recover, with confidence in Vietnam’s market fundamentals growing. This momentum should lead to a robust M&A environment in 2025,” Curtet added.

Notable new inked M&A deals set tone for the rest of the year Although the start of the year often spells a quieter period for mergers and acquisitions, 2024 has seen some notable deals announced.

Vietnam well-placed to remain strategic M&A leader A number of potential deals in the pipeline signifies bright prospects for Vietnam’s mergers and acquisitions landscape.

Traditional M&A entities buoyed by positive outlook Several notable deals have emerged in Vietnam’s dealmaking landscape, signalling a rebound in such activities.