Siam City Cement (SCCC) is set to purchase 65 per cent of the stakes in LafargeHolcim Vietnam in a deal valued at US$524m. The acquisition is due to be completed in the 4Q once all administrative procedures are completed.
This is not the first Thai purchase of Vietnamese cement operations. In 2012 SCG Cement bought Buu Long cement plant in the Dong Nai province. SCG has been developing multiple projects in the country, purchasing stakes in a range of building materials manufacturers,such as Tin Thanh, Binh Minh Plastics and Tien Phong.
Analysts have stated that the mergers and acquisitions market in the Vietnamese cement industry is busier than ever. Xuan Thanh Group has purchased both Minh Tam and Hoang Long, whilst also taking over Sai Son. Vissai has acquired Ha Nam, Dong Banh and Do Luong. Ha Long, Song Thao and Song Da have merged with Vicem. Analysts expect further deals to be made as a result of existing internal issues in the companies.