Vietnam
Elmet Group to Acquire Stake in Vietnam's Masan High-Tech Materials
The U.S. tungsten supplier aims to secure a reliable supply chain amidst growing global demand for critical minerals.
HANOI — U.S. tungsten supplier Elmet Group is set to acquire a 4.99% stake in Masan High-Tech Materials for around $125 million, as announced on September 24. This investment is expected to support supply chains for tungsten, a critical mineral increasingly sought after in various industries, including aerospace and electronics.
The transaction will see Elmet purchasing shares from a subsidiary of Masan Group, which will retain a controlling interest of approximately 87.46% in Masan High-Tech Materials following the deal. The completion of this investment is contingent upon regulatory approvals, with both parties targeting to finalize the agreement by mid-October.
“Masan will continue to explore similar partnership opportunities in key markets.”Masan Group representative
According to reports from BNEWS and Dan Tri, the share price for Masan High-Tech Materials is estimated at around 59,000 to 60,000 VND per share, leading to a valuation of about $2.5 billion for the company. This investment not only strengthens Masan's balance sheet but also enhances its capital allocation flexibility.
In addition to the equity stake, the two companies have entered into long-term agreements for the supply of tungsten products, committing to deliver approximately 1,250 tons of tungsten trioxide (WO₃) annually. This partnership is expected to generate an estimated gross revenue of around $1.5 billion over the initial term of the collaboration, based on current tungsten prices.
“This collaboration connects global tungsten supply sources with the reliable processing capabilities of Masan in Vietnam.”Industry analyst
The collaboration with Elmet is significant for Masan as it connects global tungsten supply sources with the company's processing capabilities in Vietnam, thereby supporting the industrial and high-tech manufacturing supply chains in the U.S. and other strategic markets including South Korea and Japan. Analysts have noted that this move reflects Masan's strategy to establish long-term partnerships with key customers to ensure stable tungsten supplies.
As reported by CafeBiz, this partnership marks the first time Masan Group has engaged in equity transactions with a strategic customer of Masan High-Tech Materials, indicating a shift towards securing more stable and long-term business relationships.