Singaporean firms eye M&A opportunities in Vietnam

Mergers and Acquisitions (M&As) by Singaporean companies in Vietnam reached US$72 million during the past 12 months, accounting for 9 percent in terms of quantity and 3 percent in terms of value of all M&A deals.

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The figure for Singaporean investors increased by more than three times compared to last year's level, which stood at US$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 US$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. 

Worthy of note  was the acquisition of Fortis Healthcare International for a 65 percent stake in Hoan My Medical Corporation at US$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-percent stake in Truong Hai Auto for US$41 million. 

While Singaporean firms were increasingly expanding M&As in Vietnam, Japanese investors still dominated with eight deals worth up to US$803 million over 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 US$1.3 billion in investment. 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.

VNA/VOV online