The acquisition by the ThaiBev-owned brewer consolidates its position as Vietnam’s biggest beer producer

Vietnam’s Saigon Beer Alcohol Beverage Corp (Sabeco) is planning to acquire an additional 43.2% stake in local brewer Sabibeco Group (SBB) this year, making it a subsidiary, according to reports.

Sabeco, which is Vietnam’s largest brewer, aims to purchase 37.8 million shares of SBB at VND22,000 (USD0.89) each, totaling over VND831 billion (USD33.7 million). The move will boost Sabeco’s holding in SBB from 16.4% to 59.6%. Including shares held by Sabeco-affiliated persons, its total stake will rise to 65.9%.

Sabeco is controlled by Thai Beverage Public Company Limited (ThaiBev) which holds a 53.59% stake in the Vietnamese brewer. ThaiBev is the largest brewer in Thailand.

Sabibeco, known for its Sagota brand products, operates six breweries with an annual production capacity of 610 million litres.

The acquisition will enhance Sabeco’s production capacity and reinforce its position as the country’s leading brewer by output.

According to a report by FPT Securities, Sabeco currently operates 26 plants across Vietnam with a total designed capacity of 2.4 billion litres per year. With the addition of Sabibeco’s plants, Sabeco’s total annual capacity will increase to 3.01 billion litres.

Sabeco’s main competitors in Vietnam include Heineken Vietnam, with an annual capacity of 2.78 billion litres; and Habeco, Carlsberg, and Sapporo, with output capacities of 800 million litres, 360 million litres, and 150 million litres respectively.