Having just merged the Vinmart and Vinmart + systems, Masan Consumer continues to buy Net detergent.

Masan Consumer Corporation (Masan Consumer, HNX-UPCoM: MCH) today announced that Masan HPC - a newly established member company in the Personal and Family Care industry - has made a tender offer to buy up to 60% of the shares of Net Detergent Joint Stock Company (NETCO) at VND48,000/share, equivalent to valuing the company at USD46 million, with a price-to-earnings (P/E) ratio of approximately 19.

This transaction is consistent with Masan ’s five-year strategy to expand its product portfolio and deliver the best benefits to 100 million Vietnamese consumers. Home and personal care is one of the largest and most attractive sectors in Vietnam with a market value of approximately US$3.1 billion and many rapid growth opportunities to build strong domestic brands.

NET is a strategic starting point for Masan to build a platform to diversify personal and family care products.

Net detergent production line

Established in 1968, NETCO is one of the leading domestic enterprises in home care products in Vietnam. NETCO's net revenue in 2018 was VND 1,117 billion and net profit after tax was VND 57 billion, with two popular brands, NET and NETSOFT. The company's current market share in the detergent industry is 1.5%. The market leader is Unilever with 54.9% market share, Procter & Gamble 16.0%, Dai Viet Huong 11.6%, LIX 2.7% and Vico 2.4%.[1]

With high similarity to Masan's current 300,000 points of sale, the combination of Masan and NETCO will create synergy value that will bring double-digit revenue and profit growth.

This is certainly the most notable merger deal of December, because right before that, Masan Consumer made a huge splash when merging the VinCommerce system (owning the Vinmart and Vinmart+ retail chains) and VinEco, creating a very large enterprise in retail and consumption in Vietnam.

Source: https://www.masangroup.com/vi/news/masan-news/masan-q3-profit-nearly-triples-to-reach-10.html