VietNamNet Bridge – The Bank of Tokyo’s investment in Vietinbank was the biggest merger and acquisition (M&A) deal in 2012. Foreign groups now keep pouring money into the insurance and building material enterprises.

A report of StoxPlus, a finance service firm, showed that big foreign groups now eye the Vietnamese insurance and building materials, having invested $388 million and $587 million, respectively, in the two fields so far.

The banking sector witnessed only one M&A deal in 2012, but it was a big one, worth $743 million. Meanwhile, the food and drink sector saw the sharp falls in both the number of successful affairs and the value.

Bank of Tokyo bought Vietinbank

In December 2012, the Japanese Bank of Tokyo-Mitsubishi and Vietnamese Vietinbank signed a contract under which Vietinbank would sell nearly 20 percent of its stakes, or 644 million shares to be issued, to the Japanese investor at $743 million.

After the share issuance, Vietinbank’s chartered capital will be VND32,661 billion.

French investor bought Oil Field Block 15-2

In February 2012, Conoco Philips Vietnam, the third biggest oil and gas group in the US signed a contract on selling its assets in Vietnam, which included three subsidiaries, to Perenco France, worth $1.3 billion.

This is one of the three affairs from which Conoco got $615 million. The block is situated in the Rang Dong oil exploitation area of the Cuu Long basin.

Perenco spent $397 million to buy Oil Field Block 15-1

In the second deal, Coronco Vietnam got $397 million.

Sumitomo bought 15 percent of Bao Viet Group

The fourth biggest Japanese group Sumitomo Life Insurance spent $340 million to obtain 18 percent of stakes at Bao Viet Group, the biggest insurer now in Vietnam. The shares were sold by HSBC at VND57,950 per share.

Perenco bought Nam Con Son

The third affair between Conoco and Perenco was valued at $287.3 million, which was also wrapped up in February 2012. After the transfer deal, Perenco now holds 16.3 percent of stakes at the Nam Con Son gas pipe project.

The pile line, which lasts 393 kilometers, carries gas from Nam Con Son to Vung Tau City. Prior to that, the operators of the pipe line included PetroVietnam which held 51 percent of stakes, BP with 32.7 percent and Conoco 16.3 percent.

Thai investor bought Prime Group

In late February 2012, Thai cement group Siam signed a contract on buying 85 percent of stakes of Prime Group, the biggest tile manufacturer in Vietnam, valued at $240 million, or VND5 trillion.

The group now runs 6 factories which have the capacity of 75 million square meters a year, accounting for 20 percent of the domestic market share.

Thang Long cement changes hands

The Indonesian investor spent $230 million to obtain 70 percent of stakes of the Thang Long Cement Company in Quang Ninh province. The factory has the total investment capital of VND6 trillion which churns out 2.3 million tons of products every year.

Semen Gresik is the biggest cement manufacturer in Indonesia. It is one of the 10 companies with the biggest capitalization value of over $9 billion in the Indonesian stock market. This is the first M&A conducted by the group outside of the Indonesian territory.

British group bought Soco Vietnam

In March 2012, Soco International PLC from the UK spent $95 million to buy 20 percent of stakes of Soco Vietnam from Lizeroux Oil & Gas Ltd.

Soco Vietnam holds 28.5 percent of stakes at the Te Giac Trang oil field of block 16-1 and 25 percent of stakes at Ca Ngu Vang of Block 9-2.

VNE