The proposed acquisition of the Thien Long Group by a Japanese investor has received new conditional approval. Following the transaction, the parties will be required to monitor and report on market share, prices and discounts, and formulate plans for R&D and environmental investment.
The merger and acquisition agreement between Thien Long Group Corporation and Kokuyo's investor has been conditionally approved by the National Competition Commission under the Ministry of Industry and Trade. The transaction will take the form of a business acquisition, and the parties will be required to comply with a series of conditions aimed at limiting its impact on competition.
The conditions include an obligation to monitor, over multiple periods, the annual domestic market share of the writing instruments market, as well as the average purchase prices and average selling prices of writing instruments for retailers, distributors and customers. In addition, policies for transaction discounts and sales support programs for distribution systems and customers must be formulated and reported at the request of the competition authorities.
The parties must also establish an internal code of conduct for compliance with competition law and provide annual training on Vietnamese competition law for employees and management. Specifically, they will be required to prepare and report plans for research and development activities, maintain the usage rate of environmentally friendly materials, maintain certification for the environmental management system, set targets for increasing R&D investment, and maintain or increase the number of new product lines commercialized. Kokuyo aims to acquire approximately 65% of the shares of the Thien Long Group.
factsEmbededTagIdkKanjiOnly|k:Transaction structure v:Approved conditionally as a business acquisition. A series of monitoring and reporting obligations. k:Market monitoring v:Monitoring of annual market share and prices in the writing instruments market, with reporting on selling prices and discount policies. k:Investment ratio v:Kokuyo aims to acquire approximately 65% of the shares. k:Period and plans v:The plan to increase R&D investment must cover at least 5 years from the year of the economic concentration, with investment maintained or increased from the sixth year onward. k:Environment and personnel v:Maintain the use of recycled and environmentally friendly materials, secure personnel with priority given to domestic talent, and maintain environmental certification.
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