Vingroup spends big bucks on M&A deals in 2018

By Minh Son   April 1, 2019 | 05:13 am PT
Vingroup spends big bucks on M&A deals in 2018
People shop at a Fivimart supermarket in Hanoi. Photo by Reuters/Kham
Business conglomerate Vingroup has spent hundreds of millions of dollars on acquisitions to expand its retail and auto operations.

The group’s latest financial report shows that it spent more than VND1 trillion ($43 million) to acquire supermarket chain Fivimart and mobile phone retailer Vien Thong A.

The acquisition made Fivimart a subsidiary of VinCommerce, Vingroup’s retail arm, and all its stores changed to VinMart outlets. Vien Thong A also became a part of VinPro, Vingroup’s electronics chain.

Before introducing its VinFast cars in October last year, Vingroup acquired the Vietnam operations of U.S. automaker General Motors for over VND900 billion ($38.82 million).

As part of the deal, VinFast became the exclusive distributor of the Chevrolet in Vietnam. Chevrolet’s 22 dealers in the country also became part of VinFast’s network to distribute its own cars.

The country's biggest private conglomerate also spent about $40 million to acquire a 51 percent stake in Spanish technology firm BQ to target the global smartphone market with its Vsmart brand.

Vingroup acquired a 96.4 percent stake in local pharmaceutical company VinFast for VND443 billion ($19.11 million). The company became a unit of Vingroup with its name unchanged.

It reported before tax profit of over VND13.8 trillion ($592.6 million) last year, up 52 percent from 2017, on net revenues of VND122.57 trillion ($5.24 billion).

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