00:31 (GMT +7) - Thursday 14/12/2017

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M&A activity rebounds in Q1

Released at: 12:57, 14/04/2017

M&A activity rebounds in Q1

Photo: SGC

Declining M&As in 2016 followed by busy first quarter of 2017.

by Linh San

Merger and acquisition (M&A) activity in Vietnam declined in 2016 in value and volume compared to 2015, with 39 deals worth $2.6 billion, according to the Volatility and Opportunity: Energy M&A in Asia-Pacific report released by Eversheds, a leading international law firm, in collaboration with Mergermarket, the leading independent M&A intelligence service.

In the first quarter, however, M&A volumes and values both increased year-on-year, with 13 deals worth $616 million, compared to six deals worth $85 million in the same quarter last year.

Notable deals included Thailand’s SCG Cement - Building Materials Company Limited buying the Vietnam Construction Materials JSC for $440 million and Japan’s Earth Chemical Co., Ltd buying the A My Gia JSC for $81 million.

According to the report, energy M&As in Asia-Pacific may not have seen a record year in 2016 but it was still one for the record books. While falling 33 per cent year-on-year in value, overall announced deals maintained pace with 2015’s 196, closing the year with 198 transactions valued at $77.6 billion. Increasing oil prices and government support for renewables bolstered the M&A deal flow in Asia-Pacific’s energy market last year.

The leading sub-sector in M&A activity in Asia-Pacific was renewable energy transactions, involving wind, solar, hydro, and geothermal power, which accounted for more than half of Asia-Pacific’s energy M&A transactions in 2016 (52 per cent), up from a 44 per cent in 2015.

China maintained its position as the leading market for Asia-Pacific energy M&As in 2016, accounting for 36 per cent of deals and 31 per cent of value. India had the second-largest totals, accounting for 18 per cent of deals and 22 per cent of value, followed by Australia with 11 per cent of deals and 20 per cent of value.

Period

Value ($m)

Volume

2013

1,308

31

2014

846

25

2015

4,104

48

2016

2,640

39

2017 YTD

616

13

Top Deals in Vietnam
Announcement Date Bidder Bidder Country Target Target Country Target Industry Deal Value (US$m)
7/3/2017 SCG Cement-Building Materials Company Limited Thailand Vietnam Construction Materials JSC Vietnam Construction 440
30/3/2017 Earth Chemical Co., Ltd.  Japan A My Gia Joint Stock Company Vietnam Consumer: Other 81
5/1/2017 GTNFoods JSC Vietnam Vietnam Livestock Corporation  (57.34% stake) Vietnam Agriculture 23
6/2/2017 Vinh Hoan Corporation Vietnam Thanh Binh Dong Thap Fisheries JSC Vietnam Consumer: Foods 16
15/2/2017 Sulyna Hospitality Hotel Restaurant Travel Service Company Limited  Vietnam Berjaya Long Beach Limited Liability Company (70% stake) Vietnam Leisure 15

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