Vietnamese conglomerate Vingroup has sold its retail and agriculture arms to local retail giant Masan Group in a deal said to help establish a leading consumer retail group with a network of over 2,600 supermarkets and convenience stores in Vietnam.

Under an agreement reached on Tuesday, Vingroup’s VinCommerce and VinEco arms will merge into Masan Consumer Holdings, the retail consumer business of Masan, with the latter in control of a new company to be formed after the acquisition.

Vingroup will swap its shares in VinCommerce for stakes in the new company and become a stakeholder.

Both sides are moving forward with necessary legal procedures for the signing of the official deal.

The deal will result in a new consumer retail group with a “leading scale” and “outstanding competitiveness” in Vietnam, Vingroup said in a statement.

The new company, managed and operated by Masan, will take over a network of over 2,600 VinMart supermarkets and VinMart+ convenience stores in 50 cities and provinces across Vietnam with a customer base of millions.

Masan will also take control of 14 high-tech farms currently operated by VinEco.

Current suppliers, customers, and employees of VinCommerce and VinEco will continue to enjoy the same enterprise policies and benefits under the new management, plus additional benefits from Masan, the statement reads.

Rumors of the acquisition began circulating in Vietnam on Monday, with some Vingroup employees claiming they had heard of the deal for two months.

In August, Vingroup transferred all of its shares at VinCommerce to VCM, its newly formed subsidiary, in what is considered a restructuring step to prepare for Masan's acquisition of the arm.

Masan Group Corporation, which is listed on the Ho Chi Minh City Stock Exchange, is a leading retail group in Vietnam.

Its subsidiaries include consumer retail arm Masan Consumer, lender Techcombank, meat business Masan MEATLife, and mining arm Masan Resources.

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