Vinamilk seeks to buy second US milk firm
Vinamilk seeks to buy second US milk firm
Viet Nam's biggest dairy company, Vinamilk (VNM), is seeking to buy second company in the United States as part of its accelerating merger and acquisition (M&A) strategy, Bloomberg reported.
The name of the target company or the deal value has not been disclosed, but the newswire said the deal was expected to close as early as the beginning of next year.
The company declined to comment when contacted by Vietnam News, saying the deal has yet to be made official.
In the 2016 annual shareholders' meeting, Vinamilk CEO Mai Kieu Lien said the firm would intensify its M&A activity in the future, targeting firms which have contemporary, quality products and use modern technologies.
It set aside VND4 trillion ($179.3 million) for M&A activities last year.
In May 2016, Vinamilk completed the acquisition of California-based Driftwood Dairy for a total cost of $10 million. Alongside the acquisition, it made its first venture with a Cambodian partner to open a $23 million Angkor Dairy Plant.
The local company also invested over $13 million in New Zealand's Miraka Limited Company.
Earlier this year, Vinamilk said it was seeking an opportunity with a company in the Europe.
Vinamilk is Southeast Asia's biggest milk manufacturer, with a market value standing over US$9.3 billion. It is looking to expand globally in an effort to achieve an annual revenue of $3 billion by the end of 2017.
It reported total revenues of over $1 billion and net profit of $223 million in the first half of this year.
The local company controls 53 per cent of the fresh-milk market, 26 per cent of powder-milk segment, 80 per cent of condensed milk and 85 per cent of yogurt market thanks to widespread distribution network of 224,000 retail outlets, 266 distributors and 600 supermarkets.
In July, Vinamilk got governmental approval in removing the foreign ownership cap of 49 per cent on its stocks. Meanwhile, the State Capital Investment Corporation, the Government's investment arm, plans to offload its entire 45.1 per cent stake in the company.
Its shares have climbed over 39 per cent this year, compared with a 15-per-cent rise for the benchmark VN-Index.
