CP Group, Japan's Itochu sign alliance agreement

Corporate July 26, 2014 00:00

By The Nation

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Charoen Pokphand Group is acquiring a 4.92-per-cent stake in Itochu Corporation worth about US$1 billion (Bt32 billion), to become the largest shareholder, while Itochu will acquire a 25-per-cent stake in CP Pokphand worth about $850 million.

The aim is the joint expansion of their businesses and investments worldwide. 
Dhanin Chearavanont, chairman and chief executive of CP Group, and other executives jointly signed a strategic alliance agreement with Masahiro Okafuji, president and CEO of Itochu Corp of Japan, in Hong Kong. 
The collaboration is aimed at synergising the strengths of both organisations. They will jointly seek to expand in the non-resource sector, including foods, chemicals, information technology, finance and other integrated industries, as well as promote joint initiatives in animal feed, livestock and marine-related areas. 
Moreover, both organisations will develop new markets together throughout the world alongside procurement, logistic systems and sales. Dhanin stated at the signing ceremony that CP was proud to have formed a strategic alliance with Itochu, a distinguished Japanese trading house. He expressed confidence in the capabilities of Japanese businesspeople. 
Itochu Corp, which is Japan’s third-largest trading house with consolidated sales at the end of fiscal year 2014 of about $53 billion, is successful in global trading and is financially secure. Its retail, wholesale and logistics businesses are fully integrated and its FamilyMart business is the second-largest convenience-store chain in the world, Dhanin said. 
He reiterated that the strategic alliance between CP Group and Itochu would be of great benefit to small and medium-sized enterprises as their know-how and experience can help SMEs grow sustainably.