SCB X Pcl Nears Acquisition of Home Credit’s Vietnam Business for $800 Million

For SCB X, the acquisition of Home Credit’s business in Vietnam represents a strategic milestone in its journey to become a leading regional financial technology group. SCB X aims to leverage the acquisition to enhance its product offerings and tap into Vietnam’s burgeoning consumer finance market.

Upon completion, SCB X anticipates a positive impact on its bottom line, further solidifying its position as a leading player in the region’s financial services sector.

Thailand’s banking giant SCB X Pcl is on the verge of finalising a significant deal to acquire the consumer lending business of Home Credit in Vietnam. Valued at a substantial $800 million to $900 million, this potential acquisition underscores SCB X’s strategic expansion plans and its ambition to strengthen its foothold in the dynamic Southeast Asian market.

According to sources familiar with the matter, SCB X has emerged as the frontrunner in the bidding process, outpacing other contenders such as Thailand’s Kasikornbank Pcl and South Korea’s KB Kookmin Bank. While the deal is yet to be formally announced, discussions are reportedly at an advanced stage, with an official announcement anticipated in the coming days.

Home Credit initiated the sale process last year as part of its broader efforts to streamline its operations and refocus its investment priorities. Owned by PPF Group NV, Home Credit has been reassessing its presence in Asia following the cancellation of a planned $1.5 billion initial public offering in Hong Kong in 2019. The potential sale of its Vietnamese business follows previous divestments in Indonesia and the Philippines, signaling a strategic shift towards consolidating its operations in Europe.

Founded in 1997, Home Credit has established a significant presence across multiple markets in Asia, Central and Eastern Europe, and the former Soviet Union. With its expertise in consumer finance and a diverse portfolio of offerings, Home Credit has been a key player in providing financial services to millions of customers across diverse geographies.

For SCB X, the acquisition of Home Credit’s business in Vietnam represents a strategic milestone in its journey to become a leading regional financial technology group. With a focus on expanding its presence in high-growth markets like ASEAN, SCB X aims to leverage the acquisition to enhance its product offerings and tap into Vietnam’s burgeoning consumer finance market.

CEO of SCB X, Arthid Nanthawithaya, highlighted the significance of the acquisition, emphasising its potential to drive long-term value for shareholders and position the bank as a key player in the Southeast Asian financial landscape. The deal is expected to bolster SCB X’s market share in Vietnam, providing access to a vast customer base, an extensive distribution network, and a seasoned management team.

The transaction is subject to regulatory approvals and is anticipated to be completed by the first half of the next year. Upon completion, SCB X anticipates a positive impact on its bottom line, further solidifying its position as a leading player in the region’s financial services sector.

The acquisition of Home Credit’s business in Vietnam underscores the evolving dynamics of Southeast Asia’s financial industry and the increasing importance of strategic partnerships and acquisitions in driving growth and innovation. As competition intensifies and market dynamics evolve, banks and financial institutions are increasingly looking to expand their reach and diversify their offerings to meet the evolving needs of consumers in the region.

SCB X’s proposed acquisition of Home Credit’s business in Vietnam represents a significant development in the region’s financial landscape, signaling the bank’s commitment to growth and innovation in the dynamic Southeast Asian market. With the potential to unlock new opportunities and drive value for stakeholders, this strategic move underscores SCB X’s vision to become a leading player in the region’s rapidly evolving financial ecosystem.