|Award winners announced at the Vietnam M&A Forum 2018 held in Ho Chi Minh City on August 8
Since the inception of Vietnam M&A Forum in 2009, the annual awards has grown into one of the most prestigious platforms to celebrate excellence in deal making and the performance of industry advisors in an effort to encourage more M&A deals with even higher values.
For the first time in its 10-year history, Vietnam M&A Forum 2018 announced the top ten M&A deals of the decade from the list of the 100 largest M&A deals, the top ten firms with the best M&A strategy, as well as the best advisors of the decade.
Le Trong Minh, editor-in-chief of Vietnam Investment Review and head of the Organising Board, said that M&A has become a powerful tool to lead capital flows from low-efficiency sectors to more profitable fields during the past 10 years.
Between 2009 and 2018, the total deal value reached $48.8 billion, with thousands of transactions. In 2017 alone, the value of M&A deals stood at $10.2 billion, setting up a new record.
“The Organising Board hopes that the awards will prompt companies to be more active in their M&A strategies, while advisory firms will come up with further diverse means of supporting equitisation activities in particular and M&A activities in general,” he said.
The following list of the best deals and advisory firms will provide businesses and investors with a summary of the M&A activities that took place in Vietnam, including their quality and quantity.
THE BEST M&A DEALS AND ADVISORY FIRMS IN 2017-2018
The Best Acquisition Deal: ThaiBev and Sabeco
ThaiBev bought 53.59 per cent of Vietnam's leading brewer Sabeco. The deal is valued at nearly $5 billion and was the largest M&A deal in 2017, as well as the largest deal ever in Vietnam’s history.
The Best Investment and Private Equity Deal in 2017-2018: GIC Private Limited and Vinhomes
In April 2018, Vinhomes signed a partnership agreement with Singapore’s sovereign investment fund GIC. GIC invested $1.3 billion into Vinhomes, owning shares and other debt-like instruments.
The Best IPO in 2017-2018: Vinhomes
Vinhomes raised $2 billion from its historic IPO in 2018. This was the largest IPO in recent years in Vietnam.
The Deal with the Best Information Disclosure in 2017-2018: Sojitz and Saigon Paper
Both the buyer and the seller provided transparent details online, as well as providing private letters to customers and partners.
The Best M&A Advisory Firms in 2017-2018:
The Best Securities Firms for M&A advisory: Viet Capital Securities, Bao Viet Securities
The Best Securities Firm for IPO and Private Placement: Saigon Securities Incorporation
The Best M&A Advisor: KPMG Vietnam
The Best M&A Law Firm: Allen & Overy
THE BEST M&A DEALS OF THE DECADE (2009-2018)
- ThaiBev and Sabeco: ThaiBev acquired 53 per cent of Saigon Beverage Company valued at $4.8 billion. This was the biggest M&A in the history of Vietnam. The deal played a key role in developing and helping the Vietnamese M&A market exceed the $10 billion milestone in 2017.
- GIC and Vinhomes: At the end of April 2018, Vinhomes and another Vingroup subsidiary signed agreements with Singaporean investment fund GIC Private Limited. Accordingly, GIC invested a total of $1.3 billion into Vinhomes by acquiring stakes and extend a debt-like instrument for Vinhomes to implement its projects.
- Central Group and Big C: in 2016, Central Group from Thailand has overcome heavy competition to successfully acquire Big C Vietnam for more than $1 billion. This deal reaffirmed Central Group’s ambition in the Vietnamese retail market.
- TCC Holdings and Metro Vietnam Cash & Carry: Also in 2016, Metro Cash & Carry Group announced transferring the Metro Cash & Carry supermarket chain in Vietnam to TCC Holdings from Thailand.
- Singha and Masan: In 2015, Masan singed a strategic cooperation contract with Thailand’s Singha with the value of more than $1.1 billion, including new investment capital which permits Singha to own 25 per cent of Masan Consumer Holdings and 33.3 per cent of Masan Brewery.
- Tokyo-Mitsubishi UFG and Vietinbank: In December 2012, Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank) announced that it had raised $743 million from a 20 per cent strategic stake sale to Bank of Tokyo-Mitubishi UFJ. This was the biggest M&A deal so far in the Vietnamese banking sector.
- Mondelez and Kinh Do: To realise its goal of expanding to multiple sectors, KIDO Group decided to fully transfer its entire stake in its confectionary arm to foreign investor Modelez International for $380 million and used this sum to re-invest in new acquisition deals.
- Mizuho and Vietcombank: In September 2011, Vietcombank, the nation’s largest listed bank by market value, has completed its four-year search for a strategic foreign investor by clinching a deal to sell a 15 per cent stake for $562 million to Japan’s Mizuho Corporate Bank Ltd. Notably, Mizuho is not only the first partner of Vietcombank, but also the only foreign strategic partner of the bank.
- F&N and SCIC’s holdings at Vinamilk: In December 2016, through the auction of Vinamilk’s stake held by SCIC, two subsidiaries of Singapore’s Fraser & Neave acquired 5.4 per cent valued at $500 million, increasing its ownership to 16.35 per cent.
- Merging Vinpearl and Vincom to become Vingroup: in October 2010, the Management Board of Vinpearl and Vincom merged to centre their resources in Vingroup, Vietnam’s leading economic group today.
COMPANIES WITH THE BEST M&A STRATEGY OF THE DECADE
- Vingroup: Creating breakthrough growth from the merger of Vinpearl and Vincom, then the group has attracted large capital investments in Vinhomes and VinRetail. It was also active in the deal of Vinfast acquiring GM Vietnam
- Masan: Pioneering M&A in Vietnam with big deals to form one of the biggest multi-field business groups with a hand in finance, minerals, consumer goods, and agriculture
- ThaiBev: Drawing up an M&A strategy to expand to Southeast Asia via acquiring the leading beer manufacturer in Vietnam
- KIDO Group: Exemplary M&A deals, such as the acquisition of Walls, the merger of affiliates, transferring its confectionery arm to Mondelez International, and the acquisition of plant oil manufacturers to become today’s KIDO Group
- TTC: Running a successful M&A strategy in the sugar sector, including the acquisition of Bourbon Tay Ninh Sugar Company, HAGL, the merger of Tay Ninh Sugar and Bien Hoa Sugar, and becoming a leading corporation in the sugar industry.
- PAN Group: Forming the leading food and agricultural group thanks to the acquisition of leading companies in the industry like Bibica, NSC, SSC, and Fimex
- SCG: Acquiring materials, cement, and chemicals companies in Vietnam to become a leading construction materials manufacturer in Vietnam and the region
- FPT: Implementing a gradual M&A strategy via a range of activities such as merging three member companies, transferring its holding in FPT Trading, acquiring a software company in Slovakia, and acquiring Intellinet from the US for $30 million
- Vinamilk: Implementing an M&A strategy to support its main industry activities. Successful M&A deals include the acquisition of Khanh Hoa Sugar Company, as well as raw materials and milk processing companies in New Zealand and the US
- HDBank: Implementing M&A deals in the banking industry as well as acquiring finance companies and selling shares to Saison Group to become Credit Saison, merging with PGBank
THE BEST M&A ADVISORY FIRMS OF THE DECADE
- Viet Capital Securities—M&A Security Advisor of the Decade: provided M&A consultancy to various firms, especially acquisition deals in 2009-2018
- Bao Viet Securities JSC—M&A Security Advisor of the Decade: one of the first securities companies in Vietnam which has the longest history in consulting equitisation, divestment, and M&A deal
- Baker & McKenzie—M&A Law Firm of the Decade: an international law firm that has been operating in Vietnam for 25 years. The company is categorised as a first tier law firm by IFLR
- Vilaf—M&A Law Firm of the Decade: a Vietnamese law firm that has flourished over the years. The company is ranked as a first tier law firm by IFLR
- KPMG—M&A Advisor of the Decade: As an international accounting and auditing firm, KPMG has conducted a number of M&A deals to help foreign investors approach the Vietnamese market
- Deloitte Vietnam—M&A Advisor of the Decade: Being an international auditing and advisory firm, Deloitte has supported many M&A transactions in the Vietnamese market through financial review and financial advisory
- Recof—The organisation that has done many efforts for pushing M&A activities between Vietnam and Japan: Over the past 10 years, Recof has made tireless efforts to promote M&A activities between Vietnam and Japan. The company has been supporting Japanese investors to find business and investment opportunities in Vietnam.