Thang Long - Hanoi

Singaporean firms eye M&A opportunities in Vietnam
14/09/2012 | 16:33:19
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Mergers and Acquisitions (M&As) by Singaporean companies in Vietnam reached 72 million USD during the past 12 months, accounting for 9 per cent in terms of quantity and 3 percent in terms of value of all M&A deals.

The total value of M&As in the local market was estimated at 2.5 billion USD during the twelve months from August last year, the highest level in a decade.

The figure for Singaporean investors increased by more than three times compared to last year's level, which stood at 23 million USD, and is an all-time high for Singaporean investors here.

According to London-based financial data provider Mergermarket, since August 2007, Singaporean companies have invested around 203 million USD in the Vietnamese market and carried out more than ten M&A deals.

These M&As were mostly in the chemical and biotechnology industries, while the construction, consumer goods, transport and financial sectors also saw deals.

Most notable was the acquisition of Fortis Healthcare International for a 65 percent stake in Hoan My Medical Corporation at 64 million USD in August last year. The company's name was then changed to Fortis Hoan My Group.

Earlier in 2008, Singaporean automotive group Jardine Cycle and Carriage purchased a 12-per-cent stake in Truong Hai Auto for 41 million USD.

While Singaporean firms were increasingly expanding M&As in Vietnam, Japanese investors still dominated with eight deals worth up to 803 million USD during the last 12 months.

Although French investors carried out only two M&A deals during the period, they topped the table in terms of value, with 1.3 billion USD in investments. The biggest M&A deal took place in February when ConocoPhillips, the third largest US oil company, sold its assets in Vietnam to French partner Perenco.-VNA
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