On December 3, Vietnam’s leading privately-run conglomerates Vingroup and Masan agreed to merge their some of their businesses to form the country’s largest retail group in Vietnam, said Vingroup in a statement.

Illustrative photo.

According to the agreement, Vingroup’s retail arm VinCommerce and its veggie subsidiary VinEco would merge into Masan Consumer Holdings, the consumer business of Masan. Masan would take charge of the new company.

Vingroup would swap its stake in VinCommerce for that of the new company and become a stakeholder. Details of the deal are not revealed.

The two side are finalizing details for official signing. This is considered the largest business deal in Vietnam this year.

The new company would own VinCommerce’s network of 2,600 super markets and convenience stores of VinMart and VinMart+ across 50 provinces and cities in Vietnam, along with a customer base of millions.

Additionally, Masan is set to take over 14 hi-tech farms currently operated by VinEco.

“The merging would help Masan realize its target of becoming Vietnam’s top retailer and penetrate international markets,” said Truong Cong Thang, chairman of Masan Consumer Holding.

After the takeover, Masan Consumer Holding would continue to maintain the current management policies and benefits of VinCommerce and VinEco for the two latter’s employees, suppliers and customers, plus additional benefits from Masan.

In August, Vingroup transferred its entire shares at VinCommerce to VCM, its newly formed subsidiary, which was widely seen as a step in preparation for Masan’s acquisition of the arm.

In a letter to its employees, Vingoup’s executives said, after the deal, they would focus all resources for the industrial and technology sectors with two brands VinFast and VinSmart.

Masan Group Corporation, which is listed on the Ho Chi Minh City Stock Exchange, has a spate of subsidiaries include consumer goods producer Masan Consumer Holding, lender Techcombank, meat business Masan MEATLife, and mining arm Masan Resources.