M&A deal value surges five times

MONday - 28/06/2010 09:16
Mergers & acquisitions (M&A) activities among businesses in Vietnam have seen strong growth over the past five years with value jumping from over US$1 billion in 2009 to US$5.1 billion in 2012.
M&A deal value surges five times

M&A deal value surges five times

The data was released on Tuesday by a research group of M&A Vietnam Forum at a briefing announcing the fifth M&A Forum 2013. The event will take place in HCMC on August 8.
 
M&A deals since 2009 are expected to have a total value of US$14.8 billion with an average growth rate of 65% each year, according to a report of the M&A Vietnam Forum.
 
However, the M&A market reached a total value of US$1.8 billion in the first half of the year. The market is estimated to generate US$4 billion this year.
 
Nguyen Anh Tuan, editor-in-chief of Dau Tu newspaper, the organizer of the annual event, said that M&A should not be viewed as a concern.
 
“Foreign investors that have acquired Vietnamese firms will bring capital, technologies and management capability into the country, encouraging local firms to improve competitiveness. This is a positive sign,” Tuan said.
 
M&A has been a global tendency while the scale of the M&A market in Vietnam is small compared to regional countries.
 
Besides, there is no danger of foreigners taking over local enterprises due to the barriers of Vietnamese laws, Tuan added.
 
One of most notable M&A deals in the first half of the year is the sale of Vincom Center A in HCMC at US$470 million. Last year, Bank of Tokyo-Mitsubishi acquired a 20% stake of VietinBank at US$743 million.
 
Meanwhile, France’s Conoco Philips has withdrawn from two oil rigs and Nam Con Son Pipeline project and sold its assets to Parenco at nearly US$1.3 billion.
 
According to the research group, M&A deals related to foreign investors accounted for 66% of the total value of US$5.1 billion last year.
 
Japanese investors have been paying much attention to the M&A market in Vietnam, pouring US$1.5 billion into the market in the 2011-2012 period.
 
However, the report also noticed acquisitions among rivals in recent times. Up to 50% of business leaders in this report said that they were concerned about being acquired while only 23% said that acquisition was normal.

Source: saigontimes

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