M&A ‘taste’ is changing
3 mins read

M&A ‘taste’ is changing

If in previous years banking, real estate, consumption… became the top targets for mergers and acquisitions (M&A) activities, this year the market has emerged with many new industry groups.

A typical example is the automobile industry.

Phu Quoc International Airport is being looked at by many investors.

Opening the wave of M&A in this industry is Hoang Huy Service Investment Joint Stock Company (Stock code: HHS).

Famous and large-scale in the industry, Vietnam Automobile Industry Corporation – Vinamotor also heated up the market recently when the Ministry of Transport wanted to divest all state capital in Vinamotor (97.7% of shares).

Recently, there have been at least 4 businesses wanting to gain control of this unit: TMT Automobile Joint Stock Company, Sacom Development Investment Joint Stock Company, N.A Vietnam Motor Company Limited and Thanh Joint Stock Company.

Talking to VnExpress.net, a Vinamotor representative said they are waiting for a divestment plan from the consulting unit.

Not as bustling as Vinamotor or Huy Hoang, but in early March, a new factor appeared in the market when a Thai auto business, Chairatchakarn, spent nearly 3 million USD to buy 22.6% of shares.

Recognizing the excitement of this industry group, the leader of a securities company in Ho Chi Minh City said that currently the capitalization of automobile businesses is still low, so in the coming time, M&A activities will be even hotter.

No less fierce than the automobile sector, the aviation and seaport sectors are also currently enthusiastically welcoming a `wave` of M&A.

Regarding the seaport sector, the deal that attracts the most attention from many investors is that Mr. Do Quang Hien’s T&T Group wants to become the controlling shareholder of the second largest port in the North – Quang Ninh Port.

Besides Bau Hien, other giants in the fields of construction and real estate are also not out of the game.

As for the aviation sector, in addition to international airports that are sought after by many investors, the successful IPO event of the industry giant, Vietnam Airlines, also created a new breeze to help the M&A wave in this field increase.

An industry group that is facing difficulties and even considered saturated, such as electronics, is still being looked at by many investors, both domestic and foreign.

Marking the first M&A activity in this industry, in January this year, Power Buy – a unit of Thailand’s Central Group – completed the purchase of 49% of the shares of the Technology and Solution Development Investment Company.

After Nguyen Kim, a number of other units in the electronics industry are also planning mergers and acquisitions.

Talking to VnExpress.net, economic expert Dinh The Hien acknowledged that M&A 2015 is taking place in a new context when the market is increasingly vibrant and diverse compared to previous years.

He also added that in the past, the infrastructure sector was entirely in the hands of the Government, but now with the accelerated socialization process, the State has reduced its ownership ratio and gradually reduced its intervention in business activities, so the

On the other hand, in 2015, Vietnam will join the ASEAN Economic Community (AEC), the Vietnam – EU Free Trade Agreement (Vietnam –  EU FTA), the Trans-Pacific Partnership Agreement (TPP), so it competes.

Forecasting more about the M&A market this year, according to Mr. Hien, real estate and retail mergers and acquisitions will not decline.

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