Series of large M&A deals to flourish in 2011

In 2010, in Vietnam, there were up to 345 M&A (Mergers and Acquisitions) deals being announced with a total transaction value of up to $1.7 billion. But according to market researchers, 2011 will be the time of flourishing a series of large M&A deals.

In recent years, M&A activities in Vietnam continued to grow and become one of the most notable investment channels of domestic and foreign enterprises.

According to the statistics of PWC’s research division on M&A Vietnam Forum, in 2010, in Vietnam, there were up to 345 M&A deals being announced with a total transaction value of up to $1.7 billion, up 65 percent in value compared to 2009′s. This is the highest M&A transactions value ever in the Vietnam market in years.

Especially, out of more than 300 deals in 2010, there have been many remarkable and meaningful deals, causing impact on the Vietnam’s economy such as: FPT-EVN Telecom, Vien Dong (Far East) Pharmaceutical- Ha Tay Pharmaceutical, Postal Saving- LienVietBank and Thien Minh bought the Victorian hotel chain.
Dang Xuan Minh, Avalue Vietnam Co, emphasized that a considerable trend in recent years is that Vietnamese companies play roles as buyers. Previously, when commenting about M&A deal or talking about strategic partnership issue, people often immediately thought of foreign elements because they are more prestigious and experienced financial institutions than Vietnamese firms. However, in recent years Vietnamese private firms with the role of buyers have been emerging.

“According to statistics, the number of M&A deals between Vietnamese enterprises together accounted for approximately 40 percent of total market transactions. With this trend, I believe that M&A activity in 2011 in Vietnam will continue to grow strongly. M&A activity that is being considered a method of business, investment and development in the world economy, is an example for the inevitable trend of the Vietnam’s economy-the trend of integration and globalisation” Minh said.

Evaluating on M&A activity in Vietnam in 2011 during a press conference on the M&A Vietnam 2011 forum held on May 18, a representative of Eurocham said, this is the best time to talk about M&A issue, because it will growth strongly this year and become a steady development operation of private enterprises.

According to a study of this organisation, 17 percent of enterprises in Vietnam have orientation on M&A plans in the next three years. And during 2011, M&A activity will boom in three sectors: manufacturing, banking-financial and Fast Moving Consumer Goods (FMCG).

Reprehensive of Petroleum Securities Co said the company is arranging M&A deals for about 20 businesses.

M&A Vietnam Forum in 2011 to be co-held by Vietnam Investment Review newspaper and Vietnam AVM Co on June 9 in HCM City will cover topics such as M&A activity in 2010 and the trend in 2011, analysis of outstanding M&A deals in each sectors and the lessons on success and failure and strategies on “post-M&A” related to repositioning, restructuring and corporate culture. – Dantri

Tags: Vietnam M&A