Thailand’s Singha buys into Vietnam-based Masan Group’s F&B business in $1.1b deal

In a big-ticket $1.1-billion cross-border acquisition in the south-east Asian region, Thai beer maker Singha Corp said, it will purchase 25 per cent stake in Vietnamese consumer goods firm Masan Consumer Holdings, part of diversified Masan Group, and 33.3 per cent of its subsidiary Masan Brewery.

Singha Corp will make the acquisition through its Singapore-incorporated unit Singha Asia Holding Pte Ltd,

Masan Consumer Holdings will own the balance 66.7 per cent of the Vietnamese brewer. The transaction is expected to close next month subject to regulatory and corporate approvals.

“Through the partnership, Masan and Singha immediately enlarge their addressable market as their combined food and beverage platform will be scaled up to better serve consumers in the region, with a focus on inland ASEAN countries (Vietnam, Thailand, Myanmar, Cambodia and Laos) which have a total consumer base of nearly 250 million,” Masan Group said, in a statement.

The two companies have pledged long-term commitments to support each other closely in gaining access to the other’s home country and leverage each other’s strengths in their respective categories.

“The partnership between Masan and Singha is unique as it is rare for two leading ASEAN platforms to team up. Masan has always believed that a successful strategic partnership will lead to transformational value creation. To me, this means 1 + 1 = 5,” commented Nguyen Dang Quang, Masan Group chairman.

Working with Singha as a strategic partner will enable Masan’s brands to be well received as Thailand’s 65 million consumers love its key products of fish sauce and coffee, said Palit Bhirombhakdi, CEO of Singha Asia. In turn, “Masan’s strong distribution platform, which reaches all corners of Vietnam, will allow Singha to access a fast growing market of more than 90 million consumers and support the expansion of newer categories,” he added.

Masan will benefit from a strong operational platform which includes deep distribution, understanding of local preferences, brand building, and manufacturing excellence. Thus, the collaboration is expected to accelerate Masan Consumer’s growth both in Vietnam and in neighboring countries.

For Singha, the partnership is the new opportunity for it to beef up its presence in the Vietnamese F&B industry, after its bidding effort for Vietnam’s largest beer producer Sabeco (short form of the Saigon Beer, Alcohol and Beverage Corporation) virtually failed. Sabeco said on Thursday it will not be selling major minority stakes to foreign companies, even as the government is mulling to seek private and overseas investors to buy its holding of more than 51 per cent in Sabeco.

In February, DEALSTREETASIA reported that Singha Corp would probably invest over a billion dollars in Sabeco, vying with its competitor ThaiBev.

Meanwhile, Masan has a strong Vietnam business in the seasoning, convenience foods and coffee. Its Masan Brewery unit is the maker of Su Tu Trang (White Tiger) beer brand by acquiring Phu Yen Beverage Company. However, Su Tu Trang failed to gain popularity given the country’s intensely competitive beer market.

Also Read: 

Vietnam: Brewer Sabeco not selling majority stake to foreign players

Singha joins ThaiBev in race for VN’s SABECO

Masan Group restructures consumer biz

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.