Asia Dealbook: S Korea’s JW Pharmaceutical, Japan’s Hanwa buy Vietnamese cos

Medical drugs in a pharmacy. Credit: Flickr/epSos .de

South Korea-based JW Pharmaceutical Corp has acquired Vietnamese pharmaceutical company Euvipharm, while Japan trader Hanwa has picked up a 65 per cent stake in Vietnamese steel coil plant for an undisclosed sum.

S Korea’s JW Pharmaceutical Corp acquires Vietnam co

South Korea-based JW Pharmaceutical Corp (JWP) – a part of JW Group – has acquired Vietnamese pharmaceutical company Euvipharm in an attempt to intensify its efforts to approach the ‘pharmerging’ market, according to an announcement.

Founded in 2005, Euvipharm was earlier acquired by Canada’s largest drugmaker Valeant (currently Bausch Health Companies) in 2013.

The acquisition of Euvipharm will pave the way for JWP to make a full-scale entry into the ‘pharmerging’ market of Vietnam and other ASEAN countries with locally manufactured products, the Seoul-based drugmaker said.

“With the acquisition of Euvipharm, now we have secured a large-scale plant with advanced technology and modernized equipment in Vietnam, an emerging manufacturing powerhouse,” said JW’s CEO Yeong-seop Shin. “Beginning with Vietnam as our outpost, we will continue to expand JW brand in the global market.”

The market size of Vietnamese pharmaceutical market stood at $4.7 billion in 2016 and is expected to grow up to $7 billion by 2020, according to Business Monitor International.

South Korean companies are increasingly evincing interest in Vietnam. Earlier Daewoong Pharmaceutical acquired a 15% stake in Vietnam’s second-biggest drugmaker Traphaco.

Japan trader Hanwa buys 65% in Vietnamese steel coil plant

Japanese firm Hanwa has acquired a 65 per cent stake in Vietnamese steel coil maker SMC Hanoi One Member from steel products wholesaler SMC Trading Investment, according to an announcement.

The deal size has not been disclosed.

Hanwa, headquartered in Osaka, trades a wide range of products including steels and construction materials.

After the acquisition, the steel coil maker will be renamed as Hanwa SMC Steel Service Hanoi Co. Its coil plant located in Hanoi is capable of processing 10,000 tonnes a month.

“Running the steel coil service center by Hanwa’s leadership, Hanwa is aiming further expansion of steel sheet business in Hanoi area, Vietnam, where economic development is anticipated,” Hanwa Co said.