The deal will establish Vietnam's largest retail chain.
Bloomberg reports that Vingroup JSC, Vietnam's biggest private company, will merge its retail and agriculture subsidiaries with Masan Consumer Holdings, an arm of Masan Group.
A new, unnamed company will form as a result, with Masan taking control of its operations and Vingroup's shares in VinCommerce and VinEco being converted into shares in the new entity. The deal is expected to be finalized soon.
According to VnExpress, VinCommerce owns VinMart, VinMart+ and the e-commerce site Adayroi, while VinEco is Vingroup's agricultural unit. The new company will own over 2,600 supermarkets and convenience stores in 50 of Vietnam's 63 provinces, as well VinEco's 14 farms.
VinMart and VinMart+ have expanded rapidly this year, and VinCommerce acquired both the Fivimart and Shop&Go chains as well.
The news source reports that Vingroup is offloading these business branches in order to focus on technology and industry. VinSmart, the conglomerate's technology brand, has already launched several smartphone models, and is expected to begin selling smart TVs by the end of this month.
VinFast, their vehicle manufacturing company, is currently selling three car models and an electric motorbike line, with more planned.
Deal Street Asia, meanwhile, explains that Masan Consumer manufactures and distributes a wide range of food and beverage products, such as soy sauce, fish sauce, instant noodles and bottled drinks.
South Korea's SK Group is the largest stakeholder in Masan, at 9.5%, and also holds a 6.1% stake in Vingroup.
