Unicharm acquires Vietnamese hygiene company.

The Thai subsidiary of Japanese feminine products maker Unicharm has acquired a majority interest in Diana Viet Nam, the Vietnamese producer of diapers and sanitary products.

Diana refused to reveal the exact percentage of Unicharm's holdings, but the newspaper Nikkei reports that Unicharm would hold a 95% stake in the Vietnamese company. The domestic press also states that the value of the deal is $128 million, although a source from Diana denies that this is the actual value of the acquisition.

Diana says the deal will be completed in November and that the founder of Diana Viet Nam will remain involved in business management.

"Unicharm will make the most use of Diana Viet Nam's distribution system along with our production lines to promote business in Viet Nam," says Unicharm chairman Takahisa Takahara.

Unicharm has a strong presence in the region but has been facing fierce competition from Western and local firms. By acquiring Diana Viet Nam, Unicharm hopes to expand its local presence and compete with US rival Kimberly-Clark Co. Ltd. The acquisition was reportedly made more attractive to the Japanese group by the rising value of the yen.

Diana Viet Nam currently holds a local market share of about 30%.