Masan Group is known as the most dynamic enterprise in implementing M&A deals. Through these deals, Masan is increasingly perfecting its consumer - retail platform to bring higher value to consumers.
M&A in the strategy of building a consumer - retail platform
On November 27, at the Vietnam Mergers and Acquisitions Forum organized by Dau Tu Newspaper, Masan Group was honored as the Enterprise with the typical M&A strategy 2023 - 2024.
Throughout its more than 28 years of operation, Masan Group (MSN) is known as a The most dynamic enterprise in implementing M&A deals. Through these deals, Masan is increasingly perfecting its retail consumption platform to bring higher value to consumers.
Masan Group honored as enterprise with typical M&A strategy 2023-2024
Some of Masan's typical deals include: Penetrating and holding more than 98% of Vinacafé Bien Hoa; buying control of NET detergent, Quang Ninh Mineral Water, Beer Company; controlling the interests of Saigon Nutrition Food Company; buying Sam Kim Company Limited, changing its name to Masan Nutri-Science and then changing it to Masan MEATLife; buying the VinCommerce retail chain (now renamed WinCommerce) or buying controlling shares of the Phuc Long tea and coffee chain...
Although carrying out many M&A deals, Masan is not a company specializing in M&A deals, entering many different fields to quickly increase revenue. Mr. Danny Le - General Director of Masan Group said: "When buying shares in other companies, whether at the strategic level or controlling shares, Masan always determines not to buy revenue or profit but to buy "platforms" to serve the Group's overall strategy. From a fast-moving consumer goods manufacturing company, through M&A, we have gradually completed the consumer - retail ecosystem according to the "Point of Life" strategy to serve customers and end consumers".
At the shareholders' meeting held in April 2024, Masan said that in the near future, it will not do much about M&A because there are many things developing now. Instead, Masan will focus on optimizing business operations with a focus on the core consumer - retail business segment.
It can be seen that the recent deals made by Masan all focus on the consumer - retail platform: either to increase resources to better take advantage of growth opportunities serving consumers, or to increase ownership in core business segments or gradually divest from non-core business segments.
In early October 2023, Bain Capital - the world's leading private equity fund committed to invest at least 200 million USD in equity in Masan Group. More than 2 months later, Bain Capital announced to continue increasing the investment to 250 million USD. Despite short-term fluctuations in the financial market, as well as the "easy money" period has passed, the increase in investment scale of Bain Capital shows strong confidence in the Vietnamese market and Masan's consumer-centric strategy. The capital from Bain Capital is in line with Masan's strategy to strengthen its financial position, helping the company better take advantage of growth opportunities to serve the needs of 100 million Vietnamese consumers, including necessities, financial services and other basic daily needs.
Chin_Su products are familiar with family meals
The transaction was completed by both parties on April 22, 2024. Masan said it is continuing to invest in its existing platforms and constantly innovate to be ready when the consumer market recovers. The group's goal is to become a factor that brings in many times more profit during the "golden moment" of the consumer story in Vietnam.
Previously, the total capital that the Group has mobilized from abroad since 2007, including equity and debt, is more than 5 billion USD. Funds such as KKR, TPG, SK Group... have invested in Masan 3 times, some other investors have also invested in Masan 1-2 times. It can be seen that Masan has a clear strategy and effective implementation so that a series of "big guys" have invested in this Group many times.
Reduce ownership in non-core business segment, buy additional 7.1% of WinCommerce shares
On May 14, 2024, Masan High-Tech Materials - a subsidiary of Masan Group announced that it has reached a framework agreement with Mitsubishi Materials Corporation Group (MMC Group) with many strategic contents. Accordingly, MMC Group is expected to acquire 100% of HC Starck Holding (Germany) GmbH (HCS) from Masan High-Tech Materials (MHT). The two parties will sign an offtake agreement for APT and tungsten oxide that will bring long-term benefits to both parties. Masan is expected to retain ownership in Nyobolt, a UK-based company specializing in providing fast-charging Lithium-ion battery solutions. At the same time, Masan retains the privilege of enjoying a portion of the potential profits when the "black mass" recycling technology developed by HCS is commercialized. On the other hand, on September 4, 2024, Masan Group announced that it would receive a transfer of 7.1% of WinCommerce shares from SK Group. WinCommerce (WCM) is one of the companies that owns and operates the largest modern retail chains in the country. Increasing ownership in WCM helps MSN increase its control and promote long-term growth of its core business.
"WinCommerce has entered the profitability phase. We expect this trend to continue to accelerate as we achieve Like-For-Like growth, successfully open new stores and drive the development of the Vietnamese modern retail market in the medium term" , Mr. Danny Le - General Director of Masan Group said.
WinCommerce owns the largest modern retail system in the country.
WinCommerce recorded a 9.1% year-on-year revenue growth in Q3/2024, reaching VND8,603 billion across the system, mainly contributed by the new store models WIN (serving urban shoppers) and WinMart Rural (serving rural shoppers). Profit after tax reached VND20 billion in Q3/2024 - the first quarter with net profit since the Covid period. This is a clear sign of a sustainable profit-making path in the coming time.
With the successful identification of a profitable retail model, the retail chain has resumed its store openings. WinCommerce's strategic focus in the last quarter of 2024 is to continue to achieve positive after-tax profits, accelerate growth, and accelerate store openings to reach the target of 4,000 points of sale by the end of this year.
Source: https://thanhnien.vn/chien-luoc-ma-don-luc-cho-mang-tieu-dung-ban-le-cua-masan-185241128154346892.htm
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