VietNamNet Bridge - Big C has always been listed among the biggest taxpayers since it began operation in Vietnam 17 years ago, while Metro repeatedly has reported losses. However, this does not mean Big C is more valuable than Metro.

 

Will Big C be cheaper or more expensive than Metro?

After 17 years in Vietnam, Big C has become one of the leading retailers with 32 supermarkets and 10 convenience stores. It is believed to be a huge moneymaker for the parent firm, the Casino Group, a French retailer.

Big C Vietnam is one of the relatively large systems of the global Big C network. The news that Casino Group would sell Big C in a plan to ease the financial burden has shown that Casino Group does not consider Vietnam a key market, according to analysts.

The Casino Group has only mentioned the intention of selling Big C Vietnam, while it has not shown a detailed plan and transfer price.

In its press release, Casino Group mentioned Big C Thailand and Columbia, but the two will not be subject to sale because of their big assets. The real estate assets in Thailand and Columbia Casino Group may be worth 550 million and 200 million euros, respectively.

Will Big C be cheaper or more expensive than Metro?

Big C has always been listed among the biggest taxpayers since it began operation in Vietnam 17 years ago, while Metro repeatedly has reported losses. However, this does not mean Big C is more valuable than Metro.

Big C and Metro are both big players in Vietnam’s retail industry. 

If valuing the two retail chains in euros, Big C would be more valuable, while in US dollars, Metro Vietnam deal would have higher value.

Some months ago, local newspapers reported that Metro Vietnam, with 19 distribution centers, would be transferred to Thai BJC Group under a 655 million euro, or $879 million, contract.

Bloomberg quoted Bruno Monteyne, an analyst of Sanford C. Bernstein, as saying that the value of the transfer deal in Vietnam to be made by Casino Group may be valued at 750 million euros, or $813 million.

The price difference is attributed to a sharp rise in the US dollar value against the euro.

However, as the deals would be both made in euros, Big C would be considered more valuable than Metro. This is understandable because on the books, Big C has been operating better than Metro Vietnam. Big C has always been considered a big taxpayer, while Metro Vietnam has never paid corporate income tax over the last 12 years.

However, despite the reported loss, analysts do not think Metro Vietnam has been performing badly. It has been expanding its network in Vietnam.


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