Vietnam sugar cane industry has recorded merge and acquisition (M&A) cases, this restructuring iss to establis...
Vietnam sugar cane industry has recorded merge and acquisition (M&A) cases, this restructuring iss to establish big-scale sugar cane enterprises which operate effectively.
The above 2 noted M&A cases are Bien Hoa Sugar Joint Stock Company JSC (BHS) merging with Ninh Hoa Sugar JSC (NHS) and Thanh Thanh Cong Tay Ninh Cane Sugar JSC (SBT) merging with Gialai Cane Sugar Thermoelectricity JSC (SEC).
With one owner, BHS and SBT, after M&A, account for 31.8% the total yield, not included non listed cane sugar company, and play an important role in Vietnam sugar cane industry.
Sugar cane industry is currently one of most protection from government due to import quota and above quota tariff are 80 to 100%. Participating Free Trade Agreements will lead to take off the tariff barrier and put more pressure for domestic sugar cane industry in the next phase.
However, restructuring after M&A may help increasing competence for domestic enterprises under pressure intergration from Free Trade Agreements
Source: Financial News