De Heus Vietnam signed a strategic agreement with the Vietnamese feed company Masan. This will allow De Heus to obtain full control of the feed related business of MNS Feed.
The feed business of MNS Feed (100% ANCO and 75.2% Proconco) covers thirteen animal feed mills and one premix plant. With a total combined production capacity of nearly 4 million tonnes, this strengthens De Heus’ position in Southeast Asia’s largest animal feed market. As part of the transaction, De Heus and Masan have also entered into multiple long term strategic supply agreements. These concern 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.
As a growing family business in animal nutrition, De Heus is strongly committed to support and contribute to the sustainable production of safe and healthy feed and food. The acquisition of MNS Feed supports De Heus’ focus on and ambition to offer high-quality nutrition, genetics and farm management solutions to the Vietnamese market.
De Heus strives to offer its feed customers a secure selling market and the possibility of participating in a professionally coordinated value chain. For this reason, as part of the transaction, De Heus and Masan MEATLife (MML) have agreed on numerous strategic supply agreements. These include a multi-year pig supply contract. This contract allows De Heus to supply MML with a steady flow of pigs sourced from its feed customers, leveraging the strategic partnership De Heus has developed with Topigs Norsvin.
As a combination of companies De Heus and MNS Feed, which will become the largest animal nutrition company active in the Vietnamese independent feed market. Gabor Fluit, CEO De Heus Asia: “We are very delighted with this milestone acquisition for De Heus. We warmly welcome the MNS Feed customers and employees to the De Heus family. 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 Vietnamese market. “Both also take pride in delivering high-quality products to customers and providing them with the best service available. We will continue to do so while taking the best from “both worlds”. This way we will create a top level animal nutrition company, ready for the future in the growing Vietnamese feed market.”
Mr. Johan van den Ban, General Director De Heus Vietnam and Cambodia commented: “Looking ahead, De Heus will continue to develop new value chain initiatives. These are focused on safeguarding product quality and improving the position of the livestock and aquaculture farmers and dealers.”
The transaction will take effect upon receiving the customary regulatory approval. This is expected in 2021.