One of the latest developments involves Nutifood, a nutritional foods corporation, which has successfully completed the investment procedures to acquire a 51% stake in Kido Foods.
With this ownership share, Nutifood assumes the role of the parent company, gaining control over Kido Foods, the entity behind the well-known ice cream brands Celano and Merino.
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A new product line of KIDO (Photo courtesy of the company) |
This investment in Kido Foods enables Nutifood to expand into the realm of health-oriented nutrition. Simultaneously, the deal empowers Nutifood to oversee a distribution network in the frozen food sector, with hundreds of ice cream freezers spanning from traditional retail outlets to modern chains, restaurants, hotels and entertainment venues nationwide.
Meanwhile, KIDO Group, renowned for its prowess in the M&A domain, has previously sealed an agreement to acquire the leading steam bun brand Tho Phat.
By the end of the third quarter of 2023, Tho Phat was recognized as a subsidiary of KIDO, with a 51% ownership stake, equivalent to an investment value of 810 billion VND (31.9 million USD).
In early October 2023, KIDO injected an additional 269 billion VND, increasing its ownership share in Tho Phat to 68%, indicating an expenditure of nearly 1.1 trillion VND for the complete acquisition of Tho Phat's steam bun enterprise.
By the end of 2023, several buyout deals, including the acquisition of a 100% stake in Vietnamese food distribution companies by Japanese enterprises, have transpired.
This trend underscores the robust entry of foreign companies, particularly those from Japan, into the Vietnamese food distribution market.
Specifically, New Viet Dairy, the largest wholesale food trading company in Vietnam with a 40% market share, has successfully transferred all its shares to Sojitz Group and its affiliates. Details regarding the sale price have not been disclosed.
Sojitz is also collaborating with Vinamilk and Vilico to invest in livestock farming, processing and distributing beef products in the country for both domestic and international markets. The projected scale of this collaboration across various stages is estimated to reach 500 million USD, equivalent to 11.5 trillion VND.
Additionally, Marubeni, a Japanese trading company, has acquired a minority stake of significant importance in AIG Asia Components, a leading food ingredient supplier in Vietnam.
Attracting foreign investors
This year, Vietnam's agricultural sectors are booming internationally, with expectations of continued growth in 2025. This has led to increased interest from major players and private foreign investors, who are investing heavily in Vietnamese companies through activities like M&A.
Recently, G.C Food JSC reported impressive financial results for the third quarter, with a 31% revenue increase and an 84% surge in profit after tax compared to the previous year.
Nguyen Van Thu, Chairman of G.C Food, said that the processed export-oriented fruits and vegetables industry is thriving, with significant interest and investment offers from foreign funds and strategic partners, notably from Singapore.
Looking ahead to 2025, G.C Food is considering moving its listing to the Ho Chi Minh Stock Exchange (HoSE) to raise capital for expansion while maintaining management control and honoring long-term strategies.
Vietnam's potential in the agricultural processing sector has caught the eye of foreign investors, particularly from Japan, seeking partnerships and acquisitions.
Sa Ky Food JSC is among those receiving investment interest, prioritizing cooperative offers and assessing compatibility for potential negotiations.
Foreign interest in M&A is creating opportunities for collaboration, job creation, technology transfer and product diversification. However, Vietnamese businesses must innovate, enhance capabilities and improve product quality to thrive in a competitive landscape.
Source: VNA