M&A values reach $1.5 billion in Q1

Nguyen Anh Tuan, head of the M&A Vietnam Forum 2012 organising board, said the country now ranked 8th among nations which witnessed the busiest M&A activities in the Asia-Pacific region, adding that the total M&A transaction value of the region, excluding Japan, reached $92.4 billion.

Quoting data from researchers including Thomson Reuters, IMAA and AVM, Tuan said M&A activities in Viet Nam grew on average 30 per cent per year in recent years, having become a remarkable investment channel for both local and foreign enterprises.
 
"This has become the main motive of M&A transactions," he said.

According to the researchers, the country had 345 M&A deals worth a combined $1.7 billion in 2010.

M&A values increased sharply by 135 per cent last year, totalling a record $4.7 billion, with over $2.6 billion involving foreign investors.

In terms of quantity, 77 per cent of last year's transactions involved local firms, proving the activities were busy among domestic players despite their small values.

In terms of deal values, foreign investors represented 66 per cent, a ratio showing that they tended to buy quality companies in Viet Nam.

He said M&A was expected to grow at over 30 per cent per year in the coming time, with consumer goods, banking and finance and real estate forecast to continue to be the most attractive sectors.

Last year, while M&A values in the consumer goods area amounted to $1 billion, M&A in banking and finance was highlighted with cases such as IFC-Vietinbank and PVI-Talant, struggling property also making activities popular in this area last year, he said.

Japan was leading foreign countries whose enterprises had carried out M&A activities in Viet Nam, he noted, with highlighted deals including Mizuho becoming a strategic partner of Vietcombank and Unicham buying a 95-per-cent stake of Diana.

Bao Viet Securities Co was the advisor for the mergers of confectioners North Kinh Do and then Kido with their parent Kinh Do Corporation. Another merger it advised was between property firm Vinpearl and its parent Vincom, whose charter capital has risen to VND5.5 trillion (US$300 million).

Bao Viet Securities General Director Nhu Dinh Hoa said an incomplete legal framework remained the biggest obstacle for M&A in Viet Nam.

The M&A Vietnam Forum 2012 is co-organised by Vietnam Investment Review and AVM Vietnam, with sponsorship from the Ministry of Planning and Investment.

Taking place in HCM City on June 7th, the forum will focus on the restructuring of banks and State-run enterprises and Japanese enterprises' M&A waves in Viet Nam. — VNS

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