On 11 February 2010, the State Bank of Vietnam ("SBV") issued Circular No. 04/2010/TT-NHNN regulating merger, consolidation and acquisition of credit institutions ("Circular 04").
A credit institution means a bank, finance company, finance leasing company or a credit co-operative.
A merger means one or more credit institutions
merging with another credit institution; a consolidation means two or more credit institutions consolidating to become one new credit institution; and an acquisition means a credit institution purchasing another credit institution.
Circular 04 opens the door for future M&A deals in the financial sector and replaces an old circular issued in 1998 which applied only to the merger, consolidation and acquisition of joint stock credit institutions.
For inquiries related to this Client Update, please contact:
Dao Nguyen (firstname.lastname@example.org)
Thinh Dan (email@example.com)