SABECO honoured at Vietnam M&A Forum for outstanding deal of 2024-2025

SABECO honoured at Vietnam M&A Forum for outstanding deal of 2024-2025

At the 17th Vietnam Mergers and Acquisitions (M&A) Forum on December 9, Saigon Beer – Alcohol – Beverage Corporation (SABECO) was honoured among the “Companies with the Outstanding M&A Deals of 2024-2025”, following its successful acquisition of Saigon Binh Tay Beer JSC (Sabibeco).

The recognition was announced by the organising committee after evaluation by an independent selection panel, highlighting the transaction as one of the year's most transformational strategic deals in Vietnam's beverage industry.

The award acknowledges SABECO's acquisition of nearly 38 million Sabibeco shares, equivalent to a controlling 65 per cent stake, including related shareholders' holdings. Valued at more than VND830 billion ($31.9 million) at completion on December 27, 2024, the deal is considered a pivotal milestone that strengthens SABECO's operational scale, optimises production resources, and consolidates its market leadership within Vietnam's competitive beer industry.

SABECO honoured at Vietnam M&A Forum for outstanding deal of 2024-2025

A signature strategic acquisition

Sabibeco had long been considered a company with significant production potential but burdened by structural inefficiencies. The brewer owned six factories with a combined annual capacity of around 600 million litres but reported continuous losses from 2020 to 2024, accumulating over VND538 billion in deficits. For SABECO, the acquisition opportunity aligned with its long-term roadmap to enhance production capabilities, expand market reach, and optimise operating frameworks.

As early as 2022, SABECO began pursuing a strategic assessment of Sabibeco's assets and restructuring potential. The motivation was clear: integrating Sabibeco into its network will not only increase total capacity but also unlock economies of scale, reduce production costs, and strengthen supply chain efficiency. Furthermore, by absorbing Sabibeco's facilities, SABECO aims to strengthen its foothold nationally, especially in regions where Sabibeco's regional plants could serve as strategic production hubs.

The M&A deal was structured as a full-scale transformational acquisition, one that would require systematic planning, detailed legal procedures, and precise execution. The seller in the transaction comprised 276 individual shareholders, making the negotiation and tender offer process uniquely complex.

Vietcap Securities JSC played a central role in ensuring the transaction's success, serving as the lead advisor to SABECO from the earliest stages. Starting in 2022, Vietcap worked closely with SABECO to develop a comprehensive acquisition strategy, assess multiple transaction scenarios, analyse financial, legal, and execution judgments, and optimise deal structure in line with regulatory requirements.

One major challenge was Sabibeco's corporate status. Despite being a public company, it had not yet registered for trading on the stock market. With a shareholder structure and several legal risks, the absence of a formal listing created complications for valuation, price transparency, and compliance.

Vietcap proposed a series of advisory solutions aimed at reducing legal exposure and ensuring a fair, transparent transaction for all parties. A key milestone was persuading Sabibeco to register for trading on the UPCoM exchange, which it successfully achieved at the end of 2023. This move not only established a transparent valuation basis but also created the legal foundation required for SABECO's public tender offer.

Following Sabibeco's UPCoM registration, Vietcap acted as the tender offer agent, guiding SABECO through the acquisition of shares from 276 shareholders and completing the complex multi-stage process by December 2024.

The deal's 18-month timeline involved extensive coordination among multiple stakeholders, regulatory bodies, and legal experts. According to the advisory team, the rigorous approach ensured that the process remained transparent, compliant, and executable at scale, especially for a transaction involving such a shareholder base.

A rapid turnaround through restructuring

Immediately after gaining control, SABECO initiated a comprehensive restructuring plan to revitalise Sabibeco's operations. This involved consolidating production systems across both companies, reallocating output to optimise plant efficiency, standardising governance and operating procedures, enforcing strict cost-control mechanisms, and streamlining financial management.

The integration significantly increased SABECO's total production capacity, making it the largest beer manufacturer in Vietnam. More importantly, the restructuring quickly delivered measurable results.

Sabibeco, previously loss-making, recorded a profit of VND108 billion ($4.3 million) in the first nine months of 2025, an impressive reversal from a VND76.5 billion ($3 million) loss in the same period of 2024.

For SABECO, the acquisition also translated into broader efficiency gains. The company's consolidated net profit margin rose from 15.3 to 18.1 per cent, reflecting improved cost structures, enhanced capacity utilisation, and stronger supply chain integration.

Industry analysis considers the turnaround one of the most remarkable recovery stories in Vietnam's beverage sector. The deal demonstrates not only SABECO's execution capabilities but also its strategic vision in identifying and developing assets with long-term potential.

14 enterprises honoured for outstanding M&A deals and M&A strategies in 2024-2025

The transaction required SABECO and Sabibeco to complete a series of regulatory milestones, including registering Sabibeco as a public company, listing on the UPCoM exchange, obtaining approval for economic concentration, and conducting a public tender offer in strict compliance with legal standards.

Each step involved intricate procedures and multi-agency coordination, underscoring the high level of planning behind the deal. The successful execution of these processes further strengthens the credibility of the transaction and enhanced transparency for investors.

“This 1.5-year transaction not only enabled scale expansion but also showcased SABECO's capability in methodically planning and executing a large-scale M&A,” the organising committee commented during the awards ceremony.

The committee emphasised that the acquisition serves as “clear evidence of SABECO's commitment to sustainable value creation through strategic M&A activities.”

As the restructuring continues to unfold at Sabibeco, SABECO is expected to benefit from expanded production capacity, optimised cost efficiencies, stronger market coverage, and a reinforced leadership position in Vietnam's beer sector

The deal marks one of the most impactful M&A transactions in Vietnam's beverage industry and sets a benchmark for strategic acquisitions in the country.

With this award, SABECO's transformation journey through strategic M&As has been formally recognised, signalling a new chapter in its growth trajectory and setting an example for domestic enterprises pursuing disciplined, value-driven expansion.

The Vietnam M&A Forum is the largest annual platform for dealmakers, investors, and corporate leaders. In 2025, the forum honoured 14 enterprises for outstanding M&A deals and strategies, six enterprises for outstanding IPOs and private placements, and 14 organisations for excellence in M&A advisory.

SABECO's recognition places it among the top corporations driving transformative business restructuring in Vietnam.

Industry observers view the award as both a validation of SABECO's strategic foresight and a testament to the growing maturity of Vietnam's M&A landscape. The Sabibeco acquisition showcases how Vietnamese enterprises are increasingly leveraging M&A not merely to expand scale, but to drive operational efficiency, optimise assets, and create sustainable long-term value.

VIR