Mondelez completely acquires Kinh Do Corp

American confectionery, food and beverage company Mondelez International has acquired the remaining 20% stake in Vietnam-based Kinh Do Corp for VND2tn ($90m).

In November 2014, Kido sold an 80% stake to Mondelez for $370m.

Mondelez now completely owns the Kinh Do Corp snack unit and the acquisition will help the American confectioner to strengthen its presence in the Vietnamese market.

Upon completion of acquisition, the company’s brand name will be changed to Mondelez Kinh Do.

Kinh Do is known for its confectionary products such as biscuits, soft cakes and seasonal moon cakes in the South-East Asian market.

The acquisition will allow the US confectioner to explore Vietnam’s market, where nearly 60% of the 93 million population is under 35 years old.

Modelez will also take advantage of Kinh Do’s nationwide distribution network for launching its existing brands in the Vietnamese market.

In the recent years, foreign investors are increasingly showing interest in Vietnamese market due to the fast-growing consumer population.

According to the data published by the EuroMonitor International suggested that Vietnam’s consumer spending is set to grow 47% in the next four years to $184.9bn. Through mergers and acquisitions, Vietnamese companies are predicted to hit a new record of $6bn this year.

With the Mondelez acquisition, Kinh Do Corp has officially withdrawn from a snack business that used to generate annual sales of approximately $175m.