Vingroup’s retail and agriculture units to merge with Masan

Tuesday, 2019-12-03 15:55:31
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The new company will possess over 2,600 VinMart and VinMart+ stores. (Photo: Vingroup)
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NDO - Vingroup has announced that its retail and agriculture units, VinCommerce and VinEco, will be merged with Masan Consumer, a subsidiary of Masan Group, to create a new retail and consumer goods company, purportedly the largest in Vietnam.

Under a share swap deal, Vingroup will swap all of its shares in VinCommerce into the new company after the merger and then dispose part of the shares to Masan.

Masan will take over operations while Vingroup will become a shareholder.

Vingroup said the move aims to free up resources so that it can focus on the industry and technology segment, which refers to the car manufacturer VinFast and electronic device manufacturing unit VinSmart.

The post-merger company will possess a network of more than 2,600 VinMart and VinMart+ supermarkets and convenience stores in 50 provinces and cities as well as 14 high-tech VinEco farms.

The two companies said in a press release that the agreement will maximise each side’s core competencies, thereby leading the development of Vietnam's consumer-retail industry towards the regional scale.

“Vingroup has completed its mission to create a leading clean agriculture and retail system in Vietnam, and now we will carry this flag to continue our mission to serve consumers, while ensuring a fair retail market for Vietnamese manufacturers”, said Truong Cong Thang, Chairman of Masan Consumer.

The current management system of VinCommerce as well as existing supplier policies will remain in place after the merger.