Masan Group Corporation, a leading Vietnamese private sector company, recently secured significant minority investments in its retail affiliates, VCM Services and Trading (VCM) and The CrownX. These investments, totaling approximately US$810 million, position Masan for continued growth in the Vietnamese retail market.
SK Group acquired a 16.26% stake in VCM, Masan’s consumer retail and food supply chain arm. This strategic partnership aims to leverage SK Group’s expertise to propel VCM towards becoming a leading offline-to-online retailer in the region. The investment will strengthen VCM’s balance sheet and fuel future growth initiatives within the modern trade grocery retail sector. Vcm Retail operations will benefit from the influx of capital, allowing for expansion and modernization.
In a separate transaction, a consortium led by Alibaba Group and Baring Private Equity Asia acquired a combined 5.5% stake in The CrownX, Masan’s integrated consumer retail arm and Vietnam’s largest retail company. This collaboration seeks to integrate Alibaba’s online retail prowess with Lazada and Masan’s extensive offline network. The resulting synergy is expected to transform The CrownX into a comprehensive online and offline retail marketplace, expanding its reach nationwide and establishing it as an all-in-one platform for Vietnamese consumers. This investment further solidifies The CrownX’s position in the VCM retail landscape.
Milbank LLP, a leading international law firm, advised Masan Group on both transactions. The Milbank team, led by Singapore partner Jacqueline Chan, provided legal expertise in navigating the complexities of these significant investments. Their involvement underscores the strategic importance of these deals in the evolving VCM retail market.
These strategic investments highlight Masan Group’s commitment to modernizing Vietnam’s retail sector. By partnering with global leaders like SK Group and Alibaba, Masan is poised to capitalize on the growing consumer market and solidify its position as a dominant force in VCM retail. The influx of capital and expertise will enable Masan to enhance its offerings, expand its reach, and ultimately, deliver greater value to Vietnamese consumers.
