Saturday,  Mar 28, 2020,16:31 (GMT+7) 0 0
Vingroup, Masan to merge affiliates to form largest retailer
By Minh Tam and Dung Nguyen
Tuesday,  Dec 3, 2019,19:39 (GMT+7)

Vingroup, Masan to merge affiliates to form largest retailer

By Minh Tam and Dung Nguyen

A customer inspects a Chinsu chili sauce bottle, made by Masan Consumer Holdings. The retail and agricultural arms of Vingroup will merge with the retailer Masan to create the country’s largest consumer goods and retail corporation – PHOTO: VINGROUP

HCMC – Vietnamese conglomerate Vingroup has agreed in principle to a share swap agreement, merging its retail and agricultural arms with Masan Consumer Holdings, the retail subsidiary of Masan Group, to set up the country’s largest consumer goods and retail firm.

Vingroup noted in a statement today, December 3, that its shares in VinCommerce and VinEco will be converted into shares of the new firm, and Masan Group will take control of the operation, while Vingroup will be a shareholder.

The deal aims to play to the operational strengths of the involved parties and create a new consumer goods and retail corporation with a “leading scale” and “outstanding competitiveness” in Vietnam, the statement read.

The two sides are completing the necessary legal procedures for the signing of the official agreement for the merger.

The new company is expected to take over a network of more than 2,600 VinMart supermarkets and VinMart+ convenience stores in 50 cities and provinces with millions of customers and will operate 14 hi-tech farms currently run by VinEco.

Vingroup stated that the merger will enable it to focus more resources on its industrial and technology segments.

Its subsidiary VinFast inaugurated its 500,000-square-meter plant at the Dinh Vu Industrial Park in the northern city of Haiphong in June this year. The plant has an annual production capacity of 250,000 automobiles during the first phase and up to 500,000 units during the second phase.

“Vingroup has completed its mission to create a pioneering and effective clean agriculture and retail system in Vietnam. And now, we will carry this flag to continue our mission to serve consumers, while ensuring a fair retail market for Vietnamese manufacturers,” said Truong Cong Thang, chairman of Masan Consumer Holdings, in the statement.

He added, “The accession of VinCommerce and VinEco not only resonates with and enhances the value of Masan’s core competencies but also helps us quickly achieve our goal of becoming the leading domestic retail and consumption corporation toward going global.”

Current suppliers, customers and employees of VinCommerce and VinEco will continue to enjoy the same business policies and benefits under the new management, coupled with additional benefits from Masan.

Since its inception, VinCommerce has continued to expand its scale by raising the number of stores as well as stepping up its acquisition of supermarket and convenience stores.

In October 2018, VinCommerce acquired all 23 Fivimart supermarkets from their operator, Nhat Nam JSC. In April this year, it bought all 87 outlets of the Shop&Go convenience store chain, after accepting an arguably unprecedented offer from its operator for a US$1 deal price.

Most recently, in early September, the company took over the local supermarket chain Queenland Mart run by the HCMC-based retailer Vietnam Lotus Foods JSC, founded in July 2014.

Masan Consumer Holdings is one of Vietnam’s largest fast-moving consumer goods companies. It manufactures and distributes a range of food and beverage products, including soy sauce, fish sauce, chili sauce, instant noodles and bottled beverages.

Share with your friends:         
 
Business
World
Sport
Travel
 
Publication Permit No. 321/GP-BTTT issued on October 26, 2007
Deputy Editor-in-Chief: Pham Huu Chuong
Managing Editor: Nguyen Van Thang.
Assistant Managing Editor: Pham Dinh Dung.
Head Office: 35 Nam Ky Khoi Nghia St., Dist.1, Ho Chi Minh City, Vietnam. Tel: (84.28) 3829 5936; Fax: (84.28) 3829 4294.
All rights reserved.