Prominent New M&A Agreements Establish Direction for the Remainder of the Year

While the early months of the year typically bring a lull in mergers and acquisitions, 2024 has witnessed the announcement of several noteworthy deals.

Just last week, JB Securities Vietnam, a subsidiary of South Korea’s JB Financial Group, finalized an agreement to acquire a 3.9 percent stake in Vietnamese financial service provider Infina. The company intends to increase its ownership to 5 percent in alignment with the performance of its partnership with Infina in the near future.

Active in stock trading, brokerage, corporate bond issuance, and investment, JB Securities Vietnam launched the Finavi online brokerage platform last September. Meanwhile, Infina stands as a leading financial platform specializing in asset management, serving approximately 1.3 million customers and boasting 500,000 monthly active users.

Following the deal, the two entities established a partnership to collaborate on fintech initiatives in Vietnam. This agreement forms part of JB Securities Vietnam’s strategic plans for expansion through partnerships with Vietnamese fintech firms.

Another significant deal involves KKR’s acquisition of a majority stake in Medical Saigon Group, one of Vietnam’s largest eye hospital chains, from Singapore’s investment firm Heliconia Capital Management.

Additionally, BE GROUP secured $30 million from VPBank Securities to bolster its competition against Singaporean rival Grab. Upon completion of the deal, VPBank Securities will hold a minority stake and become the first institutional investor in Be Holdings, the parent company of Be Group.

A representative from VPBank Securities stated, “By becoming a shareholder of Be, VPBank Securities anticipates significant investment returns by leveraging the potential presented by Be’s multiservice consumer platform, positioning it as one of Vietnam’s leading technology unicorns.”

On February 28, Thailand’s SCBX Group announced the acquisition of Home Credit Vietnam in a deal worth $860 million. Home Credit Vietnam commands the second-largest market share in Vietnam’s consumer finance sector, accounting for approximately 14 percent.

According to the Foreign Investment Agency under the Ministry of Planning and Investment, as of February 20, the number of capital contribution and share purchase deals stood at 367, marking a 16.6 percent decrease year-on-year. The total value of these deals amounted to over $255.4 million, down 68 percent year-on-year.

This slowdown aligns with the overarching trend observed in 2023. During that year, FiinGroup recorded 220 M&A transactions totaling $5 billion, reflecting a 33 percent decline year-on-year.

M&A activities in Vietnam saw a downturn during the period of 2021-2023, driven by global challenges prompting investors to exercise caution.

Despite the subdued activity in the early part of the year, dealmaking is expected to gain momentum as buyers seek potential assets to acquire.

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