Foreign businesses eyeing domestic cementThe first half of 2017 has passed, and while no investor has announced plans to buyout a domestic cement company, signs of an impending takeover have not decreased. Vulnerability to foreign businessesFive years ago, an M&A boom in the cement sector saw the rise of domestic cement companies, such as Vissai Group (acquired Dong Banh Cement, Oil and Gas 12-9 Cement, and Do Luong Cement), Bim Son Cement (acquired Dai Viet crushing plant through acquiring 76 per cent of the shares of Central Cement JSC), Xuan Thanh Group (acquired Minh Tam Cement, Hoang Long Cement, and Sai Son Cement). However, in recent years, foreign businesses have already taken almost all high-capacity cement projects in Vietnam, leading to a slowdown in M&A activities. The capital flows of foreign businesses are expected to be subtle in the near future, targeting weakened domestic companies with declining business results. Siam City Cement (Thailand) acquired 65 per cent shares of Holcim Cement for $580 million(Source: The Ministry of Construction)VIR

Source: VietNamNet News July 21, 2017 09:45 UTC