Japan’s Mizuho Financial Group will acquire a 15 per cent stake in Vietcombank for $567 million in what is possibly Vietnam’s largest ever inbound acquisition.
The deal is seen to provide a much-needed vote of confidence in Vietnam at a time when many investors are worried about macro-economic instability. It also highlights the strong interest from Japanese companies in Vietnam, at a time when the yen is very strong and domestic growth is stagnating.
Yasuhiro Sato, chief executive of Mizuho, said in a press release that the acquisition “is more than simply an alliance between our two banks, and I am certain that it will make a significant contribution to the further development of the relationship between our countries.”
Under the terms of the deal, Mizuho will put one director on Vietcombank’s board and the two banks are expected to work together on corporate, trade and project finance and investment banking.
Once the Mizuho acquisition is completed by the first quarter of next year, the government will still retain a stake of around 75 percent in Vietcombank, with nearly 10 percent held by other investors.
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