The headquarter of Bien Hoa Packaging is pictured in Dong Nai Province, southern Vietnam. Photo courtesy of the company.
Thai cement giant SCG Group has acquired its seventh packaging company in Vietnam, Bien Hoa Packaging, at a cost of VND2.07 trillion ($89 million).
The company owns a 94.11 percent stake in the company through its subsidiary Thai Containers Group Company Ltd, according to a recent statement.
It paid VND171,450 ($7.38) for each share of Bien Hoa Packaging, 84 percent higher than the current market price.
Bien Hoa’s clients are mainly high-growth consumer brands that are multinationals, the statement said.
Its three manufacturing facilities in southern Vietnam will enlarge SCG’s customer base in the food, beverage and fast-moving consumer goods segments, it added.
One of the six companies SCG acquired earlier is the largest in the country, Kraft Vina, a joint venture with Japanese packaging firm Rengo.
SCG was one of the earliest foreign investors in Vietnam, coming as it did in the 1990s.
Over the last decade it has been pouring money to acquire major companies, including one of the largest plastic producers, Binh Minh Plastics.
It now owns 20 subsidiaries in Vietnam in a range of industries like cement, construction materials, chemicals, and packaging.