In addition to the surge in M&A activity among finance companies, the banking sector may see even larger transactions this year. What is fueling this trend? Anticipating massive M&A deals In recent days, the domestic financial market has witnessed a flurry of activity, highlighted by Home Credit Corporation’s agreement to transfer its entire stake valued at approximately EUR800 million in Home Credit Vietnam Company to Siam Commercial Bank Public Company Limited (SCB). Home Credit holds a significant share in Vietnam’s consumer credit segment, boasting over 15 million customers, while SCB stands as Thailand’s premier bank, ranking fourth in the country in terms of total assets. The back-to-back ownership changes in finance companies in recent times indicate the robustness of M&A activities in the sector, despite challenges such as rising bad consumer debts, fierce competition in peer-to-peer lending, and the emergence of fintech companies encroaching into credit activities. In late 2023, SeABank finalized an agreement to sell its entire stake valued at VND4.3 trillion in Postal Finance Company (PTF) to AEON Financial Service Co., Ltd., a member of Japan’s largest retail group, AEON Group. Prior to that, Saigon-Hanoi Commercial Joint Stock Bank (SHB) sold 50% of the charter capital in SHB […]
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