Vietnam - Singaporean firms eye M&A opportunities in Vietnam

Mergers and Acquisitions (M&As) by Singaporean companies in Vietnam reached $72 million 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 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, 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 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 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.

While Singaporean firms were increasingly expanding M&As in Vietnam, Japanese investors still dominated with eight deals worth up to $803 million 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 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.

VIR/VNA 

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