Mergers and acquisitions are on the rise in Vietnam's water utility market, as evidenced by several months of increased activity from both domestic and international players. The potential for growth in the industry is being driven by rising tariffs, increasing demand for water, and the widening performance gap between leading and lagging utilities caused by COVID. The most recent move was this month's acquisition of two water utilities in Can Tho City by HOSE-listed Binh Duong Water Environment (BIWASE), Vietnam's third-largest water company by water treatment capacity. The two deals, involving the acquisition of a 48.86 stake in Can Tho 2 Water Supply (CT2) for VND70 billion ($3 million) and a 24.64 stake in Can Tho Water Supply and Sewerage (CTW) for VND143 billion ($6.2 million), were completed at the end of last month, and enabled BIWASE to expand into the largest city in the Mekong Delta. Meanwhile, another water utility in Binh Duong Province, HOSE-listed Thu Dau Mot Water (TDM), which is also BIWASE's largest shareholder with a 29.9 stake, had already announced in March that it would acquire a stake of between 20 and 50 in CT2. It is not the first time the two companies have invested in the same utility. In 2021 alone, the two utilities both invested in Gia Tan Water utility (GIWACO) and Dong Nai Water Utility (DOWACO).
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