South Korea becomes emerging M&A investor in Vietnam

purchase worth $882 million by South Korean KEB HANA Bank to own 15 per cent stake of the Bank for Investment and Development of Vietnam (BIDV) is the biggest M&A transaction in Vietnam banking history.

The purchase worth $882 million by South Korean KEB HANA Bank to own 15 per cent stake of the Bank for Investment and Development of Vietnam (BIDV) is the biggest M&A transaction in Vietnam banking history.

KOTRA Deputy Director Michael Dc Choi revealed that five other biggest banks of South Korea also take heed of purchase bank shares of foreign countries including Vietnam.

In March, 2019, South Korea’s chips-to-energy conglomerate SK Group has agreed to buy 6.1 percent of Vietnam’s largest firm, Vingroup, for $1 billion. SK invested $470 million to buy 9.5 percent of Vietnam’s second-biggest conglomerate Masan Group Corp. last September, becoming the largest Masan Group’s foreign investor.

Before the SK Group, another South Korean giant, Hanwha Asset Management, paid $400 million last August for 84 million preferential shares in Vingroup.

Additionally, ASAM Asset Management bought VND200 billion ($8.85 million) of convertible bonds from Vietnamese textile manufacturer TNG Investment and Trading.

South Korean investors have been increasingly looking to Vietnam for possible M&A deals because South Korea’s economy thrives and its companies have abundant cash; therefore, they have opted to invest in other countries especially through M&A deals.

Moreover, the South Korean government are focusing on supporting small and medium enterprises by pouring trillions of dollars on them in addition to eyeing M&A transaction of giant groups in foreign countries.

Director Daniel Lee said that STIC Investment is eying three companies to invest including two of Vietnam.

For years, STIC Investment has poured investment into Tiki, Cammsys Vietnam, Viet Uc Seafood, Steel producer Hoa Sen Group.

Investors from South Korea not only carried out M&A deals in Vietnam but directly invested in the country.

VNF ( SGGP )