Center Group &

BigC Vietnam
Negotiation
MITPL 8A:
- Vũ Tuấn Nghĩa
- Trần Minh Khang
- Nguyễn Thị Phương Cúc
- Nguyễn Đình Minh
- Ngô Lan Hương

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 Table of Content
01 Background

02 Reasons for acquisition

03 Process of the acquisition

04 Reasons for success

05 Current Situation
Background
 CENTER
Group
- A family-owned conglomerate holding
company in Thailand: merchandising, real
estate, retailing, hospitality and restaurants.

- Central Group was founded in 1927 and

Central Group Vietnam was established in
July 2011

- Central Group already operates two

department stores in Vietnam.

Modern Portfolio - acquired a 49% stake in electronics retailer

Designed chain Nguyen Kim in 2015.
Big C is a grocery and general
merchandising retailer headquartered
in Bangkok, Thailand. 

The Big C brand was launched in Vietnam

in 2003.

It has a network of 43 stores and 30

shopping centers and achieved a net sales
in 2015 of €586 million ($666 million).

BigC
Vietnam
Reasons for acquisition
 Reasons for acquisition
Big C Vietnam has good relationship

It’s easier for Central Group to grow and expand

their network further

Vietnam is considered a great potential retail market

An excellent and promising target market for

investors in the retail sector, including Thailand

Increase in sale

If the group was able to acquire Big C, its sales in

Vietnam would double from the current $600 million
Process of the acquisition
Protential of
- Big C Vietnam’s 2015 revenue
The market was 586 million euros.

In Vietnam - Big C Vietnam is ranked second

after the Co.opmart chain in
terms of store number.

- Acquisition of Big C Vietnam will

help Central Group save at least
seven years of development on
the local retail market
Process of the acquisition
Central Group announced on 2016
April 29 that it and its local partner
Nguyen Kim Trading Company had
jointly acquired Big C Vietnam for
$1.14 billion

This case is on top 3 of M&A of

Vietnamese

Some 20 companies joined the bid

for Big C Vietnam, including Aeon
of Japan, Lotte of South Korea,
BJC of Thailand, Saigon Co.op and
Masan of Vietnam and Central
Group.
 Process of the acquisition
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Reasons for success
 Reasons for success
- Central Group paid the highest price

- Big C need to be transferred to solve their financial

difficulties, they needs new partners to replace
them and bring the project to the destination in while
Central group has relationship, brand, and project
implementation experience

- Central Group has good financial advisors to

overcome the risks, arising problems.
Current situation
 Current situation
- After completing the acquisition of Big C,
Central Group now owns an extensive
retail system in Vietnam, covering from
urban to rural areas.

- Central Group announced plans to rename

Big C Vietnam to GO! and Tops Market.

- In addition to the rebranding, Central Retail

will also develop new GO! hypermarkets in
My Tho, Ben Tre, Tra Vinh, Buon Ma Thuot,
and Quang Ngai. The retailer has upgraded
its retail space to bring a new and modern
retail experience to customers.
Thank you for listening