Vingroup, which operates VinMart supermarkets and VinMart+ convenience stores, will merge its retail and agriculture arms with Masan Consumer Holdings, a food and beverage manufacturer.
Masan will operate the new company
Vingroup wants to focus its resources on high-tech ventures like VinFast, which manufactures automobiles and VinSmart, which develops consumer technology. It will swap all its shares in Vincommerce JSC of Vingroup (retail) and VinEco (agriculture) into shares of the post-merger company. Masan will then have a controlling stake of the new company, while Vingroup will be a shareholder.
Truong Công Thang, Chairman of Board of Directors of Masan Consumer, said “Vingroup has completed its mission to create the most effective clean agriculture and retail system in Vietnam. We will carry this flag to continue our mission to serve consumers, while ensuring a fair retail market for Vietnamese manufacturers.”
Masan plans to go regional
Masan Consumer is one of Vietnam’s largest FMCG companies. It manufactures a range of products including soya sauce, fish sauce, chili sauce, instant noodles and bottled beverages. The new company will own a retail network of 2,600 VinMart and VinMart+ stores in 50 provinces and 14 VinEco high-tech farms. The agreement will allow Masan to achieve its goal of becoming the leading domestic retail and consumer group.
“The deal will maximize the core competencies of each party to develop a new enterprise,” said Truong Công Thang, adding the move will lead to “the development of Vietnam’s consumer-retail industry toward regional scale."
Retail Analysis Asia