Authority requests explanation of Metro Vietnam acquisition
The Vietnam Competition Authority (VCA) has ordered the Thai owner of the MM Mega Market Vietnam Co. Ltd to explain the acquisition of Metro Cash & Carry Co. Ltd, a big wholesaler in Vietnam, by May 30.
The VCA, which is under the Ministry of Industry and Trade, said the Ho Chi Minh City Business Association had asked it to examine foreign-invested retail companies’ adherence to local laws so as to ensure the strictness of the law and fair competition.
The authority will review economic concentration cases conducted in 2014 and 2015 to give the business association feedback on the targeted retailers’ compliance with the law.
The examination is pursuant to Item 2 of Article 7 in the Law on Competition, the VCA noted.
As the MM Mega Market Vietnam Co. Ltd was established in accordance with Vietnam’s law and operates in Vietnam, it has to obey the country’s Law on Competition, the VCA said.
The firm must send explanation documents on the process and transaction procedures for acquiring Metro Cash & Carry Vietnam to the VCA before May 30.
The authority will review economic concentration cases conducted in 2014 and 2015 to give the business association feedback on the targeted retailers’ compliance with the law.
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Last year, TCC Holding, a group owned by Thailand’s second richest entrepreneur Charoen Sirivadhanabhakdi, completed the acquisition of Metro Cash & Carry Vietnam. It spent almost US$880 million on buying the 19 wholesale stores and the related real estate.
Metro Cash & Carry Vietnam, originally an affiliate of Germany’s Metro Group, was renamed the MM Mega Market Vietnam Co. Ltd on January 25, 2016.As the MM Mega Market Vietnam Co. Ltd was established in accordance with Vietnam’s law and operates in Vietnam, it has to obey the country’s Law on Competition, the VCA said.
The firm must send explanation documents on the process and transaction procedures for acquiring Metro Cash & Carry Vietnam to the VCA before May 30.
