Abstract:
Business environment has been changed day by day so that it requires enterprises move faster and react quicker to its changes. And mergers and acquisitions (M&A) can be a powerful tool that significantly allows companies reach their goals and strategies. Applying a case study methodology, this thesis will analyze the acquisition of Saigon Beer-Alcohol-Beverage Corporation by Thai Beverage Public Company Limited. This transaction announced on December 18th, 2017 with an estimated total consideration of roughly $4.85 billion. The Thai Beverage (THAIBEV) affiliate Saigon-Beer-Alcohol Beverage (SABECO) acquired 343,6 million stock shares, equal to a 53.6% stake, at price approximately $14.5 per SABECO share. This deal has been considered not only one of the largest M&A deals in Vietnam in history, but also one of the largest M&A deal ever of the Asian beer industry. This study would like to highlight on the following topics: (1) analyze the acquisition’s key aspects; (2) evaluate the acquisition; (3) comparison of beer companies’ valuation in other countries and comparison with other food companies’ valuations in Vietnam; (4) the acquisition’s market reaction and about THAIBEV’s and SABECO’s future changes.
