Japan firms increase local acquisitions

News/HA NOI — A recent survey by StoxPlus Financial Media of mergers and acquisitions (M&A) in Viet Nam found 63 deals took place in the first nine months of the year, worth a total of US$2.67 billion – an increase of 150 per cent over the same period last year.

While the greatest number of the deals involved takeovers by American and Chinese enterprises, the greatest value in terms of direct cash flow was generated by Japanese companies. M&A deals involving Japanese investors reached a valued of nearly $236 million, the survey found.

"The interest of Japanese companies in the Vietnamese market has been increasing over other foreign investors," said StoxPlus. Sectors in which Japanese partners have sought to invest more include finance, construction materials, logistics and pharmaceuticals.

In recent deals, FPT Securities Co sold a 20-per-cent stake worth $25 million to Japan's SBI Securities Co at a price of VND45,000 per share, three times its price on the over-the-counter (OTC) market. After the deal, FPT Securities increased its charter capital to VND550 billion ($27.5 million) and enjoyed enhanced capacity in advisory and underwriting services.

Nikko Cordial Securities Co has also acquired a 14.9-per-cent interest in PetroVietnam Securities, worth $6.9 million. The Japanese securities firm promised to support the local company, especially in its risk management systems.

In a new deal being negotiated, Mizuho Bank will acquire a 20-per-cent stake in Vietcombank. The $560 million deal, if concluded, would make 2011 a record year for Japanese investment to Viet Nam.

In the consumer products sector, Japanese brewery group Kirin Holdings acquired Viet Nam's Interfoods in March, buying up 57.25 per cent of total outstanding shares for a sum of over $4 million. More recently, Unicharm paid $128 million last month to buy 95 per cent of sanitary goods producer Diana Viet Nam. — VNS