Mondelēz acquires majority stake in Vietnam’s Kinh Do snack business for USD370 million
14 November 2014
Mondelēz International’s recent acquisition of an 80% stake in the snack business of Vietnam’s Kinh Do Corporation for approximately USD370 million, is reported to be one of the largest cross-border M&A transactions to date in Vietnam and the largest ever in the Vietnamese FMCG sector.
Allen & Overy is advising Kinh Do in this landmark transaction as the global snacks company seeks to expand its presence in the fast-growing Asian market.
Mondelēz is one of the world’s leading snacks companies with various iconic brands such as Oreo cookies, Ritz crackers, Cadbury and Toblerone chocolates. Kinh Do is one of the leading confectionery companies in Vietnam with a wide range of products, including biscuits, buns, cakes, moon cakes, ice cream, snacks and chocolates.
The transaction is expected to close in the second quarter of 2015, subject to Kinh Do shareholder and regulatory approval. Mondelēz has the option to buy the remaining 20% stake within 12 months of the completion of the initial share sale.
The A&O team is led by Vietnam corporate partner Duc Tran, with support from former A&O senior associate Jeff Olson and corporate senior associate Tina LeDinh as well as corporate associates Hai Ha, Phuong Tran and Anh Le. Specialist anti-trust advice is being provided by counsel François Renard. Morgan Stanley and Standard Chartered Bank acted as the financial advisers to Kinh Do.
Commenting on the deal, corporate partner Duc Tran said: “We are honoured to have assisted Kinh Do on this significant transaction for the FMCG sector in Asia. Following this strategic investment, Kinh Do will pursue further expansion into the industry sectors of edible oils, ice cream, and dairy and coffee. Vietnam is a market of great appeal to international investors. Factors such as the government’s equitisation programme and changes to the country’s investments laws are clearly opening up opportunities for M&A in Vietnam.”
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