In a cross-border deal in Vietnam, Saigon Asset Management Corporation buys out US-based Heritage Beverage Company, exclusive importer of Saigon beer products to the North American market. Meanwhile, Germany has committed to bring its direct investment into Vietnam to $5 billion within the next five years.
Saigon Asset to take over US co Heritage Beverage
Ho Chi Minh City-based Saigon Asset Management Corporation will acquire all the outstanding shares of American Heritage Beverage Company in an all-cash transaction.
“The acquisition is the next step in development of Saigon Asset Management’s private equity activities by targeting high growth companies with competitive advantages between the US and Vietnam,” the Vietnamese asset management firm said, in a statement.
The future transaction will allow Saigon Asset Management to invest in selling Saigon Beer – Alcohol and Beverage JSC (Sabeco) products in North America, as Heritage Beverage is the exclusive US and Canada distributor of the largest Vietnamese brewer’s Saigon beer brand.
The acquisition will also enable Saigon Asset Management to secure long-term access to North America’s distribution and retail channels at lower cost.
“The proposed acquisition will be ideally positioned to capture the growth opportunities created by the rapidly evolving import beer industry in the US and Canada,” said Louis Nguyen, chairman and CEO of the Vietnamese partner, who will join Heritage Beverage as the new president.
Saigon Asset Management is well-known locally for its fund management and M&A activities with a number of investments over the last several years by its Vietnam Equity Holding and Vietnam Property Holding funds, which have deployed over $250 million in over 45 companies and projects in the country.
Eli Holsinger, CEO of Heritage Beverage, said: “Saigon Asset Management and Sabeco have been working together since 2005 in various projects and capacities. This combination creates an even stronger partner for our customers. Joining forces with Saigon Asset Management will enable Heritage Beverage to broadly offer the best Vietnamese beers to the world’s largest beer drinking region.”
FDI from Germany to hit $5 billion
Foreign direct investment (FDI) from Germany into Vietnam is expected to hit $5 billion within the next five years, up by over 3.5 times compared to last year, seen as a result of the recent meeting between German chancellor Angela Merkel and Truong Tan Sang, the president of Vietnam.
German FDI inflow to Vietnam has remained modest, reaching $1.41 billion in 2014 and ranking the fifth position among countries from the European Union. According to the Ministry of Planning and Investment, German companies had 274 projects with a total pledged capital of $1.48 billion as of October 2015. Dominant players are engineering and electronics companies Bosch and Siemen, automakers Audi AG and DaimlerChrysler, and consumer product firm Braun GmbH.
Merkel and Sang have agreed to boost mutual investment in the two countries’ manufacturing, electrical engineering, infrastructure, renewable energy, agriculture and consumer goods sectors.
In addition, bilateral trade is also anticipated to increase by 156 per cent over the next five years to touch $20 billion.