China’s CDH Investments is reportedly in advanced negotiations to acquire a minority stake in Bach Hoa Xanh (BHX) from Vietnamese retailer Mobile World for about $1.7 billion, according to sources familiar with the matter cited by Reuters on Wednesday.
CDH, a prominent alternative investment firm in China and a former investor in Mobile World, is considered the frontrunner to purchase a stake of up to 10%, outbidding other potential buyers.
The deal, if successful, is expected to be finalized as early as next month, according to one source. Both sources requested anonymity due to the private nature of the matter.
CDH’s potential investment highlights the growing interest of global investors in Vietnam’s rapidly expanding consumer sectors, despite challenges in the country’s property sector due to an anti-corruption campaign.
Mobile World, the parent company of BHX, initially planned to sell a minority stake in the grocery chain in 2022 but postponed the move due to unfavorable market conditions.
Founded in 2002 by Chairman Wu Shangzhi, CDH has shifted its focus from traditional industries to managing over $27 billion in assets. The firm has made significant investments in companies like WH Group and Midea Group.
