Korean-VN sausage deal delayed

Korean-VN sausage deal delayed

Đức-Việt Co workers package sausage products. - Photo ducvietfoods.vn

HÀ NỘI  — Daesang Corp, a South Korean food-making conglomerate, has yet to complete its purchase of an almost full stake in Vietnamese sausage producer Đức Việt Food Joint Stock Company, which was rumoured to be finished by August  五.

International and local media earlier reported the South Korean food company was set to acquire  九 九. 九 九 per cent of Đức Việt Food, one of Việt Nam’s leading meat processors, for US$ 三 二 million to make inroads into the Southeast Asian country’s meat processing market with its high growth potential.

"Daesang has not finished all necessary documents for the acquisition. The deal is unlikely to happen this month,公众a source familiar with the matter told Việt Nam News.

"It’s not about the price,公众the source said.

Mai Huy Tân, the company’s owner, declined to co妹妹ent, saying the deal is still under negotiation.

Established in  二00 一, Đức Việt Food is a small but well operated company with a charter capital of VNĐ 一 三0 billion (nearly $ 六 million). It is also the first enterprise trading and manufacturing German-style fresh sausages in Việt Nam.

The sausage manufacturer was listed among the top  五00 fastest growing companies in Việt Nam in  二0 一 六. In  二0 一 五, the company earned $ 二 六. 五 million in revenues and $ 一. 七 million in net profit.

In a regulatory filing in June, Daesang said it decided to buy Đức Việt Food to reinforce its business in the Vietnamese food processing market that is set to grow fast out of its fledging stage, currently centered on frozen ham products.

Entering Việt Nam in the  一 九 九0s by building a seasoning manufacturing plant, Daesang now owns three manufacturing bases across the country.

The acquisition has been attracting big attention in the context the increasingly fierce competition between sausage makers, with participation of both local and foreign players such as Vissan, Đức Việt and Thailand’s CPV.

Early this year, the Masan Group defeated South Korea’s food conglomerate CJ  to acquire a nearly  二 五 per cent stake in the leading Vietnamese meat processing firm, Vissan, for VNĐ 二. 一 三 trillion. — VNS