Vingroup, Vietnam’s biggest listed firm by market value, said on Tuesday it will merge with leading consumer retailer Masan Group to create the country’s biggest retail company.
Vingroup said in a statement that the two companies were finalizing legal procedures to sign an official agreement for the merger between its retail and agriculture units and Masan Consumer, a subsidiary of Masan Group.
“The merger will enable us to expand our consumer base and ensure a fair retail playing ground for Vietnamese manufacturers,” said Truong Cong Thang, chairman of Masan Consumer Holding, which produces Vietnamese must-buy consumer goods.
The new company is expected to run 2,600 supermarkets and convenience stores, and 14 hi-tech farms across the country, the statement added. After the merger, Masan Group will take control of the operation, while Vingroup will be a shareholder. Reporting by Phuong Nguyen on Reuters.
According to a report on Vietnam Star, Vingroup is the largest private-owned group in Vietnam by market capitalization, and ranks in the Top 10 Largest Enterprises in Vietnam (including both FDI and State-owned enterprises). In 2018, Vingroup announced its vision to become a world-class technology-industrial-services group. The company is listing nearly 3.2 billion shares on the Ho Chi Minh Stock Exchange with code VIC.
Masan Group is among the top three largest private sector companies in Vietnam in terms of market capitalization. The group was founded in 1996 and is headquartered in Ho Chi Minh city. Its subsidiaries include Masan Food (consumer staples), Techcombank (financial services) and Masan Resources (mining). The group launched on the Ho Chi Minh Stock Exchange on 5 November 2009 with code MSN. Masan Group was among the first domestic Vietnamese corporations to adopt a growth strategy that taps foreign sources of capital for acquisition-driven expansion.