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VinCommerce, VinEco to merge with Masan’s consumer arm
Posted on Tuesday, 03 December 2019 09:38
Vingroup has signed a memorandum of understanding (MOU) to merge VinCommerce and VinEco with Masan Group’s Masan Consumer (MCH) to create a new customer company with “superior competitive advantage and size in Vietnam”.
The country’s largest listed corporation by market value said its retail and agricultural arms have completed their missions to become the largest and most effective systems in their sectors domestically.
VinCommerce’s VinMart & VinMart+ brands are the biggest chains, with 111 supermarkets and more than 1,800 convenience stores, respectively, in nearly 50 provinces across Vietnam, according to Vingroup’s website.
The business adheres to international standards and has the ability to compete fairly with leading foreign retail competitors while maintaining and gaining market share through its distribution channel.
VinEco, as a vegetables brand, has gained good feedback from domestic and foreign consumers and supports small-scale companies to invest in and promote clean agriculture.
Masan’s MCH was established in 2013 and is one of Vietnam’s largest branded food and beverage companies, billed with having a market leadership in consumer categories such as seasonings, for example.
The subsidiary’s portfolio comprises Chin-su, Nam Ngu, Tam Thai Tu, Omachi, Kokomi, Vinacafe, Wake-Up, Vinh Hao and Quang Hanh, among others.
Under terms of the MOU, Vingroup will swap its shares in VinCommerce for stock in the post-merger entity and dispose of part of its stake to Masan, which will operate the new organisation.
The amalgamated group will have a distribution network of 2,600 VinMart & VinMart+ stores in 50 provinces with millions of customers and 14 VinEco farms.
It will be supported by resources built up from 20 years of experience in consumer goods from Masan, which has subsidiaries and affiliates operating in sectors ranging from meat and value-added chemical processing to financial services.
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