According to Reuters, Chinese firm CDH Investments is in talks to acquire a minority stake in the Bách Hóa Xanh grocery store chain from Mobile World Investment Corporation (MWG). If a deal is reached, the valuation of the Bách Hóa Xanh chain could reach $1.7 billion.
Sources indicate that CDH, one of China’s largest investment companies, has previously held shares in Mobile World. The Chinese company has emerged as a leading candidate to acquire up to 10% of Bách Hóa Xanh shares after surpassing competing bidders.
“CDH Investment intends to acquire between 5% and 10% of Bách Hóa Xanh shares,” the source said. Discussions are ongoing and it is uncertain whether a deal will occur.
Another source mentioned that a deal “could be signed as early as next month if the negotiations are successful”. Both sources declined to be named due to privacy concerns. CDH and Mobile World Investment Corporation both declined to comment on the matter.
If the agreement between CDH Investment and Mobile World Investment Corporation goes through, it would demonstrate foreign investors’ interest in Vietnam’s fastest-growing business sectors, retail and consumer goods.
In 2022, Mobile World Investment Corporation first announced plans to sell a minority stake in the Bách Hóa Xanh chain. The plan was put on hold due to unfavorable market conditions. Last year, the divestment process was restarted and attracted interest from Singapore’s national investment fund GIC and companies from Thailand.
CDH Investment, established in 2002 by Chairman Wu Sangzhi, is one of China’s first private equity firms. It is known for its high-risk investment activities in traditional sectors such as consumer goods and manufacturing.
Currently, CDH manages over $27 billion in assets and is a major investor in WH Group – the world’s largest pork supplier, and Midea Group – a home appliance manufacturer. One source mentioned that CDH divested from Mobile World almost 10 years ago to profit from that investment.
