ThaiBev acquires majority stakes in Vietnam’s largest brewer
This acquisition is the largest one in Vietnam’s history when it comes to state-owned enterprises
ThaiBev, Thailand’s largest, and one of the biggest beverage companies in Southeast Asia is taking over 54% shares in Vietnam’s Saigon Alcohol Beer and Beverages Corporation (SABECO). The news came after ThaiBev won the rights of purchase after an auction that was held on the 18th of December, 2017. ThaiBev was the sole bidder, even though a number of other major beverage companies, such as Anheuser-Busch, Asahi and others were interested in acquiring shares of SABECO.
According to the latest information, Vietnam’s government will receive $US 4.8 billion from this transaction. The price itself was the main reason why other companies did not raise their bids. On the other hand, the high price tag could be explained by the fact that Vietnam is the largest beer market in Southeast Asia, and third in Asia (after China and Japan).
Vietnam’s beer consumption grew 40% between 2010 and 2015, with 3.4 billion liters of beer being consumed in Vietnam in 2015. This trend is predicted to continue until 2020.
SABECO is Vietnam’s leading brewer, and holds around 40% of the beer market in Vietnam. It’s most famous brands are Saigon Beer and 333 Beer.
With this move, ThaiBev is increasing its grasp on the Vietnamese market, as the company already holds a 16% stake in Vietnam Dairy Products JSC, the country’s biggest dairy producer.
Original sources
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