Companies unveil M&A plans across multiple sectors at shareholders' meetings

Monday, May 20, 2024 09:50

FPT leaders at the Auto China 2024 Exhibition which took place from April 25 to May 4, 2024. FPT aims to use M&A to expedite the implementation of large contracts, with a particular interest in businesses within the automobile industry. — Photo FPT

The current General Meeting of Shareholders (AGM) season has revealed notable M&A plans by companies, encompassing various industries including agriculture, food, automobile design and real estate.

During The PAN Group Joint Stock Company's AGM at the end of April 2024, Nguyễn Duy Hưng, Chairman of the Board of Directors, shared the company's M&A plan for the next three years.

The PAN Group is seeking business tie ups that align with its three main segments: agriculture, packaged food and seafood. However, at present, no businesses fitting these criteria have been identified.

The PAN Group's transformation from an industrial cleaning services company to a major player in the agricultural-food industry has been facilitated by a series of M&A deals with industry leaders such as Vinaseed, Aquatex Ben Tre, Lafooco, Bibica and Shin Ca, among others.

At the recent 2024 AGM, Trương Gia Bình, Chairman of the Board of Directors of FPT Corporation, expressed ambitions to acquire all companies related to automobile design.

FPT aims to use M&A to expedite the implementation of large contracts, with a particular interest in businesses within the automobile industry.

Bình emphasised the importance of software expertise, understanding the auto industry, and knowledge of security in the current 'confused' state of the global auto industry.

FPT's existing workforce of 4,000 employees in this field provides a solid foundation, but M&A is seen as a means to accelerate progress. FPT's advantage lies in its access to the Japanese market, which is traditionally challenging for foreign companies.

Earlier this year, FPT successfully completed a deal with a Japanese company, Next Advanced Communications (NAC). FPT's future target markets include Korea, Singapore and Europe, expanding upon its previous focus on the US market.

In 2023, FPT executed four M&A deals and invested in technology companies in the US and France, such as Intertec International, Cardinal Peak, AOSIS and Landing AI.

With a people- and technology-centric approach, FPT aims to achieve steady growth, building on its current revenue of US$1 billion from IT services in foreign markets and setting sights on reaching $5-10 billion.

Gelex Group Joint Stock Company, led by Nguyễn Văn Tuấn, General Director, has shifted its focus from quick acquisitions to seeking suitable M&A opportunities. Gelex recognises the importance of building a solid management foundation to achieve long-term success.

The company aims to co-operate with larger partners and engage in M&A deals that align with its capacity, financial strength and human resource capital.

Gelex's business in 2023 saw a turning point as it emphasised collaboration with international partners. The establishment of a joint venture with Frasers to develop industrial parks in the North, with an initial investment of approximately VNĐ6 trillion, is a significant step.

Additionally, Gelex is working with Sembcorp to transfer a portion of its energy segment. The group is focusing on changing management practices, particularly within advantageous subsidiaries like Cadivi, to develop these units, seek opportunities for collaboration with foreign partners and transfer technology for higher-value production areas.

Gelex's strategy includes divesting from the wind power segment, but only partially, as the group seeks suitable partners for future projects. Currently, Gelex's energy investment portfolio comprises nearly 3,500 MW, including wind and solar power.

Thaiholdings Joint Stock Company's leaders view the present as an opportune time to focus on low-cost real estate projects through M&A deals. This year, the company's primary focus will be on financial and real estate investments. —VNS

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