12:26:47 PM | 7/8/2008
Vietnam is still an attractive market for merger and acquisition activities despite difficulties of the macro economy, said PricewaterhouseCoopers (PwC).
Vietnam witnessed 48 M&A transactions worth US$347 million in the first six months, PwC said in an updated report July 29.
Several typical M&A cases are the 25 per cent stake acquisition by Swiss Re over Vinare in January with value of US$81.9 million, the Russian Kamaz Inc.’s purchase of a 12.5 per cent stake into VMIC in February and Morgan Stanley’s buying a 48.33 per cent stake into Vietgate Securities.
In addition, Franklin Resources Inc bought a 49 per cent stake in Vietcombank Fund Management Co. in February, Malaysia’s Berhard purchased a 15 per cent stake in An Binh Bank in March, Carlsberg bought a 16 per cent stake and becomes Habeco’s strategic investor in May.
The value of M&A transactions the first half of 2008 is smaller than that of the same period last year, but the number of M&A increased by one case. In the first six months of 2007, Vietnam saw 47 M&A cases worth US$736 million.
PwC experts said that it is too soon to say number of M&A will fall or not.
PwC’s data show that the M&A transactions in the second half of 2007 were valued at US$1.13 billion, much higher than the first quarter. Therefore, the transactions in the second quarter this year may continue to increase.
Merger and acquisition in banking and finance sector, especially among securities companies, will increase in coming months, PwC forecast.
Foreign investors are also interested into several other sectors in Vietnam, such as telecom, retail sale, distribution and construction materials.
The loosen regulations on foreigners working in Vietnam will also help boost M&A market in the country. (Vietnam Economic Times)
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