Vietnam’s biggest retailer Masan to bolster pharmacy retail interests
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Vingroup JSC, Vietnam’s biggest listed firm by market value, said on Tuesday it will merge with leading consumer retailer Masan Group t create the country’s biggest retail company.
Vingroup said in a statement that the two companies were finalizing legal procedures to sign an official agreement for the merger between its retail and agriculture units and Masan Consumer, a subsidiary of Masan Group.
“The merger will enable us to expand our consumer base and ensure a fair retail playing ground for Vietnamese manufacturers,” said Truong Cong Thang, chairman of Masan Consumer Holding, which produces Vietnamese must-buy consumer goods.
The new company is expected to run 2,600 supermarkets and convenience stores, and 14 hi-tech farms across the country, the statement added.
After the merger, Masan Group will take control of the operation, while Vingroup will be a shareholder.
Questions & Answers
Q.What is the primary reason for this merger between Vingroup and Masan?
What is the primary reason for this merger between Vingroup and Masan?
The merger aims to expand the consumer base for the combined entity. It also seeks to ensure a fair retail playing ground for Vietnamese manufacturers, according to the chairman of Masan Consumer Holding.
Q.Which specific units from Vingroup are involved in this merger?
Which specific units from Vingroup are involved in this merger?
Vingroup's retail and agriculture units are being merged. These will combine with Masan Consumer, a subsidiary of Masan Group, to form the new, larger retail company.
Q.What will the operational structure of the new retail company be?
What will the operational structure of the new retail company be?
After the merger is completed, Masan Group will assume control of the daily operations of the combined retail company. Vingroup will then become a shareholder in this new entity.
Q.What scale of operations will the new combined company have?
What scale of operations will the new combined company have?
The new company is projected to operate a network of 2,600 supermarkets and convenience stores across the country. Also, it will manage 14 hi-tech farms as part of its operations.
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