Vietnam - a magnet for M&A deals
(VOVWORLD) - Vietnam has become a favoured destination for merger and acquisition (M&A) deals for foreign investors, particularly those from the Republic of Korea (RoK), China’s Hong Kong, Singapore and Japan as the Asian multinationals see the benefits of having presence in one of the region’s fastest-growing economies.
RoK investors have overwhelmed M&A deals in the Southeast Asian country, the Vietnam M&A Forum (MAF)’s M&A report showed. Conglomerate SK Group signed a billion dollar deal with Vingroup, in May to acquire more than 150 million primary shares in Vingroup and 51 million shares of the firm’s Vincommerce for 1 billion USD. After the transaction, SK would own a 6 percent stake and become a strategic partner of the Vietnamese real estate, tech, retail and services giant.
Furthermore, Shinhan Card bought Prudential Vietnam Finance Company Limited at 151 million USD, while Samsung SDS has pledged purchasing 25 percent stake of CMC, Vietnam’s leading information technology service provider.
According to the Korea Financial Investment Association (KOFIA), the Korean funds poured some 3.5 billion USD in Vietnam as of May, or 13 times higher than four years ago.