HANOI (Reuters) - Vingroup JSC VIC.HM, Vietnam’s biggest listed firm by market value, said on Tuesday it will merge with leading consumer retailer Masan Group Corp MSN.HM to create the country’s biggest retail company.
Vingroup said in a statement that the two companies were finalizing legal procedures to sign an official agreement for the merger between its retail and agriculture units and Masan Consumer MCH.HNO, a subsidiary of Masan Group.
“The merger will enable us to expand our consumer base and ensure a fair retail playing ground for Vietnamese manufacturers,” said Truong Cong Thang, chairman of Masan Consumer Holding, which produces Vietnamese must-buy consumer goods.
The new company is expected to run 2,600 supermarkets and convenience stores, and 14 hi-tech farms across the country, the statement added.
After the merger, Masan Group will take control of the operation, while Vingroup will be a shareholder.
Reporting by Phuong Nguyen, Editing by Sherry Jacob-Phillips