Masan Beverage will buy at least 65 percent of the state-owned Quang Ninh Natural Mineral Water Limited Company when the latter makes its initial public offering, the media reported Tuesday.
The two companies have signed an agreement to that effect.
Quang Ninh, based in the northern province of the same name, owns two mineral water brands, Quang Hanh and Faith, which are popular locally.
The beverage subsidiary of Masan Consumer Holdings expects the purchase to make it the leader in the bottled-water market by this year end, news website Saigon Times Online reported.
Masan Beverage has also increased its stake in the Vinh Hao Mineral Water Corporation, whose products are popular in the southern and central regions, to nearly 64 percent.
The company estimates the combined revenues of the two producers to be nearly VND1 trillion (US$44.22 million) this year.
According to market research company Euromonitor, Vietnam's bottled-water market will be worth more than $460 million by 2017.