VN Dealbook: Totalgaz acquires Petronas’ Vietnam unit, Sacom pull out of Vinamotor takeover

Visual from Vinamotor website.

The Vietnam-based unit of French integrated oil and gas group Total reached a deal to acquire the liquid petroleum gas business of Malaysia’s Petronas in Vietnam even as Sacom Development and Investment Corp, a local company, pulled out of the takeover deal of the Vietnam Motors Industry Corp.

Totalgaz acquires Petronas’ LPG biz in Vietnam

Totalgaz Vietnam Limited has announced the acquisition of Malaysian company Petronas‘ liquefied petroleum gas (LPG) business in Vietnam.

The agreement signed last week in Malaysia, covers Petronas’ two liquefied petroleum filling facilities in the northern city of Hai Phong and the southern province of Dong Nai together with a large portfolio of customers and partners, the reported.

With this purchase, Total will become the second largest LPG player in Vietnam, after the local giant PetroVietnam.

French-owned Total, one of the largest integrated oil and gas companies in the world, has been in Vietnam for over 20 years in the LPG, lubricants and retail fuel businesses.

Sacom withdraws from acquiring state-owned automobile business

Sacom Development and Investment Corp has announced that it is pulling out of the takeover deal related to the state-owned automobile company, Vietnam Motors Industry Corporation (Vinamotor), to focus its resources in developing a five-star hotel.

Meanwhile, Sacom had earlier proposed that it will purchase up to 97.7 per cent of Vinamotor, planning to spend at least VND856 billion ($38 million) on the deal.

Sacom has been a Ho Chi Minh City Stock Exchange-listed company for 15 years.

Vinamotor had failed to attract buyers in its initial public offer (IPO) in March 2014 and sold only 3.1 per cent stake to general investors. Vietnam then decided to offload the entire state holding in the company,with several private businesses expressing their interest, including Sacom, TMT Automobile, NA Vietnam Motor and Thanh Cong Ninh Binh, a subsidiary of the local automobile group Thanh Cong.

However, the transaction has not come to a close despite the interest of these investors.

Also Read: TMT Automobile plans takeover of Vinamotor