70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Investment / News
Thai bank acquires Vietnamese finance company
Ngoc Mai 15:05, 2024/02/29
Thailand's fourth-largest bank has agreed to acquire all the equity of Home Credit Vietnam for US$865 million.

Home Credit Group on February 28 announced the transfer of its entire shareholding in Home Credit Vietnam Financial Company to the Siam Commercial Bank Public Company (SCB), a member of SCBX Public Company (SCBX). The transfer agreement is valued at around EUR800 million (US$865 million).

 The deal is expected to be worth US$865 million. 

The transfer process is expected to be completed in the first half of 2025, following approval by the relevant authorities in Vietnam and Thailand.

Home Credit Vietnam, a subsidiary of the international investment group PPF, started operations in 2009. The company holds a 14% market share of the consumer credit market, ranking second in Vietnam (after FE Credit).

Home Credit's core services include installment loans for consumer goods (motorcycles, appliances, electronics, furniture), cash loans, and credit cards.

The acquirer, SCB, is the oldest bank in Thailand and the fourth largest in total assets. SCB's parent company, SCBX, is a financial technology conglomerate with 12 subsidiaries operating in three sectors: banking, consumer finance, digital technology, and connectivity platforms.

The sale of Vietnam's second-largest finance company came when the consumer finance market was facing several headwinds. Low-income customers have been hit hard by economic difficulties, leading to a surge in non-performing loans for finance companies. New lending has also slowed down due to increased risks and reduced demand.

In the first half of the previous year, the profits of financial companies saw significant declines, with some reporting substantial losses ranging from hundreds of billions to trillions of Vietnamese dong (VND). In this challenging environment, Home Credit reported a profit of over VND210 billion ($8.5 million) in the first half of 2023, ranking second after MCredit.

TAG: Vietnam news vietnam thailand finance company Home Credit Vietnam The Siam Commercial Bank Public Company
Other news
12:23, 2024/04/08
US-based Rosen Partner to invest in world-class entertainment complex projects in Vietnam
The project is expected to crystallize and showcase Vietnam's unique cultural values to the world.
15:07, 2024/03/13
Foreign capital set to dominate Vietnam’s M&A landscape
The positive trend of foreign capital in the M&A market this year follows the momentum of 2023, where the top five largest deals involved foreign investors.
19:51, 2024/03/04
Samsung to invest US$1 billion annually in Vietnam
Samsung's R&D center currently employs 2,400 engineers, with Vietnamese engineers playing a crucial role in researching AI features for the new Galaxy S24 phone series.
15:05, 2024/02/29
Thai bank acquires Vietnamese finance company
Thailand's fourth-largest bank has agreed to acquire all the equity of Home Credit Vietnam for US$865 million.
14:08, 2024/01/27
Vietnam appreciates support from int’l friends in nation-building: PM
The goal is to develop Vietnam's economy and become a regional powerhouse in Asia.
15:18, 2024/01/20
Vietnam, Hungary call for stronger economic ties
Leaders from both sides also reaffirmed their commitment to creating a "peace of mind" investment environment for investors.