SCB X, Thailand's biggest bank has reached an agreement to acquire consumer lender Home Credit's business in Vietnam for approximately US$860 million.
In SCB X's press release, the acquisition, set to be finalized by the first half of next year pending regulatory approvals, represents a significant step towards becoming a leading regional financial technology group, according to
"Vietnam, with its dynamic economy averaging 7.5% GDP growth over the past decade and a tech-savvy population, is a key strategic market for SCBX. This acquisition marks the beginning of SCBX Group's expansion into Vietnam, a country with a population of over 100 million," said SCB X's CEO Arthid Nanthawithaya.
With this strategic move, SCB X intends to solidify its foothold in the high-growth ASEAN market, leveraging Home Credit Vietnam's substantial customer base, point-of-sale network, and experienced management team.
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Home Credit initiated the sale of its Vietnamese unit last year as part of its broader operational streamlining efforts, prompted by a shift in investment focus back to Europe under the ownership of PPF, controlled by the late Czech billionaire Petr Kellner's family.
The acquisition is a transformative opportunity for SCB X, granting it access to about 14% of Vietnam's consumer finance market and reinforcing its commitment to long-term shareholder value, noted CEO Arthid Nanthawithaya.
Home Credit Vietnam's impressive financial performance, including a net profit of 1,320 billion Vietnamese dong in 2022 and robust asset growth over the past decade, underscores the strategic appeal of the acquisition for Thailand's biggest bank.
Meanwhile, the CEO of Home Credit Group, Radek Pluhar congratulates both parties on the $860 million deal.
"I wish to congratulate my colleagues on building a successful and respected business that has served over 15 million Vietnamese customers as they look ahead to this exciting new chapter."
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