The Thai subsidiary of Japanese feminine products maker Unicharm has acquired a majority interest in the Vietnamese producer of diapers and sanitary products Diana Viet Nam.
Diana refused to reveal the exact percentage of Unicharm's holdings, but the newspaper Nikkei reported that Unicharm would hold a 95% stake in the Vietnamese company.The domestic press also stated that the value of the deal was $128 million, although a source from Diana yesterday denied that this was the actual value of the acquisition.
Diana said the deal would be completed in November and that the founder of Diana Viet Nam would remain involved in the board of management.
"Unicharm will make the most use of Diana Viet Nam's distribution system along with our production lines to promote business in Viet Nam," says Unicharm chairman Takahisa Takahara.
Diana Viet Nam general director Do Anh Tu also expressed his hopes for expansion based on the investment by Unicharm.
Unicharm has a strong presence in the region but has been facing fierce competition from Western and local firms. By acquiring Diana Viet Nam, Unicharm hopes to expand its local presence and compete with US rival Kimberly-Clark Co Ltd. The acquisition was reportedly made more attractive to the Japanese group by the rising value of the yen.
Diana Viet Nam currently holds a local market share of about 30%.