Korea’s Taekwang Industrial Co Ltd has submitted a letter with intention to acquire Gemadept Corporation, Viet Nam’s largest logistics firm, as part of efforts to establish a logistics network in Southeast Asia. This was reported by The Korea Economic Daily.
If the acquisition is successful, Taekwang expects to create synergy between its existing manufacturing plants and Gemadept’s logistics network.
Taekwang, established in 1950, is a large Korean corporation in the field of synthetic fibre, textiles and petrochemicals. The company has been present in Viet Nam for more than 20 years and is one of the largest footwear manufacturing enterprises in the country.
Founded in 1990, Gemadept has several subsidiaries in the areas of logistics, port operations and real estate development.
In terms of overseas investment, Gemadept is planting rubber in Cambodia and building a real estate complex in Laos.
Gemadept’s share price has increased sharply recently following information that the enterprise can withdraw capital from subsidiaries in logistics, selling its entire 15 per cent stake in Gemadept Tower. In 2014, Gemadept sold 85 per cent stake in Gemadept Tower to the Korea’s CJ Group.
Vienam News contacted Gemadept but the company declined to comment.