M&A deals increase during time of crisis

More M&As are expected this year, experts say.

KIDO merg

Kido's share (KDC) price soared by 84 percent last May to a high since August 2018. The catalyst that pushed the share price up after two years was the news about the merger of the group.

A document released on May 25 showed the merger of Kido Frozen Foods JSC (KDF) with KDC. Two days later, Tuong An Vegetable Oil JSC (TAC) announced a plan to merge with KDC. After that, TAC price soared by 42 percent in the second half of May.

The last trading session of May saw the price of Hoang Anh Gia Lai Agriculture International (HNG) share increase to the ceiling price thanks to news that a group of shareholders related to Thaco had been buying HNG shares.

M&A deals increase during time of crisis



The group of shareholders now holds 37.17 percent of HNG shares, or 412 million shares.

Thaco caught public attention recently with the takeover of Hung Vuong Seafood JSC.

M&As have been mentioned in the 2020 business plans of many listed enterprises.

Techno – Agricultural Supplying JSC (TSC) is expected to see the F.I.T. Group raising its ownership ratio in TSC to 80 percent of voting shares. Meanwhile, Indo Trans Logistics Corporation (ITL) and the Vietnam Electrical Equipment JSC (GEX) are racing to increase their ownership ratios to be able to take over the Southern Logistics Service Company (STG).

Even startups have showed interest in M&As this year. The merger of Tiki and Sendo, two e-commerce firms, is an example. The deal is expected to be completed in July.

Vinhomes, a big real estate developer, has announced a plan to develop industrial real estate projects in anticipation of foreign investors’ relocation moves.

M&A – strategy for the crisis period?


Analysts believe that M&Adeals are a daring but wise strategy now.

In the case of Kido, an M&A would allow the holding company to gather strength to help affiliated companies exploit its advantages in finance, administration and strategy.

 

Meanwhile, the KDF deal also helped attract investors’ attention. KDF shares were put into transactions on UpCom market in 2017, but did not catch much attention.

M&As are also useful for businesses which plan to expand their operation inother business fields, because they save costs and time.

Thaco has done this with HNG and HVG. It established THADI, a farm production, processing and distribution company, in March 2019, and has been acquiring agriculture businesses facing difficulties.

Vinhomes, a big real estate developer, has announced a plan to develop industrial real estate projects in anticipation of foreign investors’ relocation moves.

As a result, Vinhomes is expected to take over some businesses in the field to acquire land for IZ development as soon as possible.

Thanh Mai 

Vietnam's e-commerce platforms Tiki, Sendo apply for merger

Vietnam's e-commerce platforms Tiki, Sendo apply for merger

The merger will make the race in the e-commerce market more exciting.

Merger could tip scales in ride-hailing

Merger could tip scales in ride-hailing

The two local ride-hailing platforms be and FastGo could negotiate a merger to break the dominance of Grab in Vietnam.

 
 

Other News

.
US firms create record 4.8 million jobs in June
US firms create record 4.8 million jobs in June
BUSINESSicon  03/07/2020 

The reopening of businesses has spurred job growth but a rise in Covid-19 cases may hamper recovery.

Chubb Life Vietnam honored “Best Companies to Work for in Asia 2020”
Chubb Life Vietnam honored “Best Companies to Work for in Asia 2020”
BUSINESSicon  03/07/2020 

Chubb Life Vietnam has been recognized as one of the “Best Companies to Work for in Asia 2020” by HR Asia, the continent’s leading publication for Human Resources professionals.

VN government to sell stake in country’s biggest brewery
VN government to sell stake in country’s biggest brewery
BUSINESSicon  03/07/2020 

The Government will sell its 36% stake, equivalent to 230.8 million shares worth some VND37.6 trillion (US$1.6 billion), in the Saigon Beer-Alcohol-Beverage Corporation (Sabeco), the country’s biggest brewery, this year.

Fabric production an issue for Vietnam's textile industry
Fabric production an issue for Vietnam's textile industry
BUSINESSicon  03/07/2020 

Fabric production is a challenge for Vietnam's textile and garment industry when it comes to free trade agreements (FTAs) requirements on product origin.

Vietnam's FDI inflows to increase
Vietnam's FDI inflows to increase
BUSINESSicon  03/07/2020 

A new wave of foreign direct investment driven by global uncertainty such as the US-China trade war and the COVID-19 pandemic is imminent in Vietnam, 

Predatory debt collectors hustling on borrowed time
Predatory debt collectors hustling on borrowed time
BUSINESSicon  02/07/2020 

Debt-collecting businesses are to be banned in Vietnam as part of local government action to protect customers’ rights, with the upsurge of predatory lending services triggering heated debate and eroding public trust.

Proposal steers sports betting to starting line
Proposal steers sports betting to starting line
BUSINESSicon  03/07/2020 

A proposed national steering committee is expected to help Vietnam build clearer prize-winning entertainment rules and set up closer connections between government authorities and investors 

EVFTA will broaden skies for aviation across Vietnam
EVFTA will broaden skies for aviation across Vietnam
BUSINESSicon  03/07/2020 

Never-before-seen activities in Vietnam’s aviation sphere are expected to come to EU businesses soon on the back of the landmark EU-Vietnam Free Trade Agreement.

RCEP benefits on horizon for ASEAN
RCEP benefits on horizon for ASEAN
FEATUREicon  02/07/2020 

With the Regional Comprehensive Economic Partnership scheduled to be signed this November, doors will soon open to attract more investment and swell Vietnam’s trade with international partners.

An abundance of advantages to diversify ops into Vietnam
An abundance of advantages to diversify ops into Vietnam
BUSINESSicon  02/07/2020 

Amidst the new wave of foreign investment and relocation after the pandemic, director general of the Foreign Investment Agency Do Nhat Hoang explained Vietnam’s outstanding advantages and how it can seize arising opportunities.

Vietnam closes in on tech app tax avoiders
Vietnam closes in on tech app tax avoiders
BUSINESSicon  02/07/2020 

Apple and Google are once again under fire over tax avoidance in Vietnam, with none of their revenues from their app markets being retained in the country. However, a new law could soon enable local authorities to take their cut.

Drugmakers fight to attain approval
Drugmakers fight to attain approval
BUSINESSicon  02/07/2020 

Switzerland’s drug maker Novartis Pharma Services AG has announced a GMP qualification for Lek Pharmaceuticals d.d. within the scope of certification for medicines in Vietnam,

PouYuen lays off thousands  due to Covid-19 difficulties
PouYuen lays off thousands due to Covid-19 difficulties
BUSINESSicon  02/07/2020 

More than 6,000 workers of the Taiwanese company, PouYuen, in HCM City have been laid off due to the company's business difficulties during the Covid-19 pandemic.

Fitch Solutions revises up Viet Nam’s 2020 GDP growth
Fitch Solutions revises up Viet Nam’s 2020 GDP growth
BUSINESSicon  02/07/2020 

Fitch Solutions have revised up its 2020 real GDP growth forecast for Viet Nam slightly to 3.0 per cent, from 2.8 per cent previously.

Domestic demand the driving force for agriculture to develop
Domestic demand the driving force for agriculture to develop
BUSINESSicon  03/07/2020 

Nguyen Quoc Toan, director-general of the General Department for Agricultural Products Processing and Market Development, under the Ministry of Agriculture and Rural Development, 

Zalo Bank not licensed by SBV and MoIT
Zalo Bank not licensed by SBV and MoIT
BUSINESSicon  02/07/2020 

The State Bank of Vietnam (SBV) and the Ministry of Industry and Trade have affirmed that they have not licensed Zalo Bank to provide online built-in financial services.

EVFTA to come into effect in a month
EVFTA to come into effect in a month
BUSINESSicon  02/07/2020 

The EVFTA will abolish 65 per cent of the duties on EU exports to its developing partner, with the remainder phased out over a 10-year period.

Footwear sector to improve supply chain to take advantage of EVFTA
Footwear sector to improve supply chain to take advantage of EVFTA
BUSINESSicon  02/07/2020 

Vietnam’s leather and footwear industry should improve its supply chain performance to take advantage of the milestone trade deal that Vietnam has signed with the EU and to recover from the effects of the COVID-19 crisis, 

World Bank Vietnam has new head
World Bank Vietnam has new head
BUSINESSicon  02/07/2020 

From July 1, Ms. Carolyn Turk will work at the World Bank (WB) Hanoi office as its country director in Vietnam, according to the office.

China maintains position as Vietnam's largest import market
China maintains position as Vietnam's largest import market
VIDEOicon  02/07/2020 

Despite the first half of the year seeing Vietnamese export turnover to China only reaching a mere US$34.8 billion, China retained its place as the country’s largest import market, according to the General Statistics Office.

 
 
 
Leave your comment on an article

OR QUICK LOGIN