Itochu agrees to $1.9 billion food tie-up with CP Pokphand
SEAFOODNEWS.COM [Bloomberg News] By Yuriy Humber and Anuchit Nguyen - July 24, 2014 -
Itochu Corp. (8001), Japan’s third-largest trading company, agreed to a business tie-up with Thai agriculture group Charoen Pokphand as the two companies seek to expand food supply in the world’s most populous region.
Itochu will buy an HK$6.6 billion stake ($852 million) in Hong Kong-based unit CP Pokphand Co. and the Thai company will take 102.4 billion yen ($1 billion) of Itochu’s stock, the two companies said in separate statements. Itochu will also spend as much as 110 billion yen on a share buy back over the next year, the company said in its filing.
The cross shareholdings will help the two boost sales and cut the cost of buying raw materials as well as reducing asset running costs, Tokyo-based Itochu said today...
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