De Heus Vietnam recently announced the signing of a strategic agreement with Masan, in which De Heus will obtain control of 100% of the feed related business of MNS Feed.
MNS Feed includes 13 animal feed mills and one premix plant, with a total combined production capacity of nearly 4 million tonnes, strengthening De Heus’ position in Southeast Asia’s largest animal feed market.
As part of the transaction, De Heus and Masan said they have entered into multiple long-term strategic supply agreements for the supply of feed and pigs by De Heus to Masan.
The transaction allows both companies to optimize and drive productivity of Vietnam’s 3F (feed-farm-food) animal protein value chain, by leveraging on each respective parties’ strength and capabilities.
Gabor Fluit, chief executive officer, De Heus Asia, said a promising future is ahead for the combined feed organization of De Heus and MNS Feed, which will become the largest animal nutrition company active in the Vietnamese independent feed market.
“We are very delighted with this milestone acquisition for De Heus,” Fluit said. “We warmly welcome the MNS Feed customers and employees to the De Heus family and are convinced that combining the highly respected MNS Feed business with the existing De Heus organization will bring benefit to all.
“Both companies have a strong reputation in the market and take pride in delivering high-quality products to our customers and providing them with the best service available. We will continue to do so while taking the best from ‘both worlds’ and therewith creating an undisputed top level animal nutrition company that will be ready for a bright future in the growing Vietnamese feed market.”
Johan van den Ban, general director, De Heus Vietnam and Cambodia added: “Looking ahead, De Heus will continue to develop new value chain initiatives, focused on safeguarding product quality and improving the position of the livestock and aquaculture farmers and dealers. This transaction will accelerate the implementation of our commitment to bring the animal protein value chain in Vietnam to a higher level in terms of food safety, productivity, and sustainability. Together with the independent farmers, our feed distributors, employees and strategic partners we are ready for further growth and success.”
The transaction will take effect upon receiving the customary regulatory approval, which is expected by the end of 2021.