Trading house Mitsui to buy 35% of Vietnam shrimp processor Minh Phu Seafood
TOKYO, NNA - Japanese trading house Mitsui & Co. will purchase a 35.1 percent stake in Minh Phu Seafood Joint Stock Company, as part of its medium-term management plan.
The company said Thursday that by investing in the world's biggest shrimp processor, which integrates farming, processing and sales, Mitsui aims to expand its food and agriculture business, as demand for sustainable protein grows across the globe.
The acquisition price is 17 billion yen ($150 million), a Mitsui spokesman told NNA on Friday. He declined comment on the timing of the share purchase.
In 2013, Mitsui invested in Minh Phu Hau Giang Joint Stock Company (MPHG), a processing plant affiliated with Minh Phu Seafood.
“By investing in the parent company, Mitsui will be able to apply the initiatives developed inside MPHG to the entire Minh Phu group, and leverage sales networks established by Mitsui's global group to expand sales,” the company said in a statement.
Mitsui said this will also help Minh Phu Seafood achieve further growth through the application of digital technology, including artificial intelligence, at farming ponds and processing plants, and enhance the efficiency of the shrimp supply chain from farming to marketing.
Minh Phu owns two processing plants and shrimp farms over an area of 900 hectares combined in southern Vietnam. The company delivers its products to some 50 countries, including the United States and Japan, accounting for 20 percent of Vietnam's total shrimp exports.
Mitsui launched what it calls its nutrition agriculture headquarters in Tokyo in 2016 to nurture growth in its food and agriculture business.
In February, Mitsui said it would jointly acquire with Ishihara Sangyo Kaisha Ltd., a 25 percent share in Ouro Fino Quimica Ltda, a Brazilian agrochemical company.