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M&A activity rebounds in Vietnam in Q1

Merger and acquisition (M&A) activity in Vietnam declined in 2016 in value and volume compared to 2015, with 39 deals worth $2.6 billion, according to the Volatility and Opportunity: Energy M&A in Asia-Pacific report released by Eversheds in collaboration with Mergermarket.


M&A activity rebounds in Vietnam in Q1



In the first quarter, however, M&A volumes and values both increased year-on-year, with 13 deals worth $616 million, compared to six deals worth $85 million in the same quarter last year.

Notable deals included Thailand’s SCG Cement - Building Materials Company Limited buying the Vietnam Construction Materials JSC for $440 million and Japan’s Earth Chemical Co., Ltd buying the A My Gia JSC for $81 million.

According to the report, energy M&As in Asia-Pacific may not have seen a record year in 2016 but it was still one for the record books. 

While falling 33 per cent year-on-year in value, overall announced deals maintained pace with 2015’s 196, closing the year with 198 transactions valued at $77.6 billion. 

Increasing oil prices and government support for renewables bolstered the M&A deal flow in Asia-Pacific’s energy market last year.

The leading sub-sector in M&A activity in Asia-Pacific was renewable energy transactions, involving wind, solar, hydro, and geothermal power, which accounted for more than half of Asia-Pacific’s energy M&A transactions in 2016 (52 per cent), up from a 44 per cent in 2015.

China maintained its position as the leading market for Asia-Pacific energy M&As in 2016, accounting for 36 per cent of deals and 31 per cent of value. India had the second-largest totals, accounting for 18 per cent of deals and 22 per cent of value, followed by Australia with 11 per cent of deals and 20 per cent of value.


Period


Value ($m)


Volume


2013


1,308


31


2014


846


25


2015


4,104


48


2016


2,640


39


2017 YTD


616


13


Top Deals in Vietnam
Announcement Date
Bidder
Bidder Country
Target
Target Country
Target Industry
Deal Value (US$m)
7/3/2017
SCG Cement-Building Materials Company Limited
Thailand
Vietnam Construction Materials JSC
Vietnam
Construction
440
30/3/2017
Earth Chemical Co., Ltd. 
Japan
A My Gia Joint Stock Company
Vietnam
Consumer: Other
81
5/1/2017
GTNFoods JSC
Vietnam
Vietnam Livestock Corporation  (57.34% stake)
Vietnam
Agriculture
23
6/2/2017
Vinh Hoan Corporation
Vietnam
Thanh Binh Dong Thap Fisheries JSC
Vietnam
Consumer: Foods
16
15/2/2017
Sulyna Hospitality Hotel Restaurant Travel Service Company Limited 
Vietnam
Berjaya Long Beach Limited Liability Company (70% stake)
Vietnam
Leisure
15

VN Economic Times