Thai Union Group PCL announced Mitsubishi Corporation is upping its stake in the company from just over 6 percent to 20 percent.
Thai Union Group said it and Mitsubishi have entered into a new business alliance and are deepening a partnership that started in 1991 when Mitsubishi first acquired shares in Thai Union.
The deal will see Mitsubishi acquire 532.27 million Thai Union shares for THB 12.50 (USD 0.38, EUR 0.33) each – 6 percent higher than Thai Union’s closing price of THB 11.80 (USD 0.36, EUR 0.31) on 1 August. At that level, the deal is worth approximately THB 6.65 billion (USD 205 million, EUR 177 million).
“Thai Union’s strategic alliance with Mitsubishi Corporation is a testament to the strength of our business and our shared vision for the future of the seafood industry,” Thai Union CEO Thiraphong Chansiri said.
Thai Union said that the new alliance will create powerful synergies, allowing both companies to capitalize on growing demand for seafood. Thai Union’s processing capability will now be able to tap into Mitsubishi’s procurement and distribution networks, giving the company more access to raw materials and markets. The company also said it will increase its presence in key markets by using the strengths of each company and expand its high-potential segments like pet food.
Thai Union restructured its pet business in the U.S. in 2022, when its subsidiary i-Tail Corporation Public Company Limited established i-Tail Americas to take care of the pet food business in the country. At the time, the company was already experiencing strong growth, and the company closed out FY 2024 with improved performance within its pet care segment.
Thai Union added that the new transaction will not have any direct effect on company leadership.
“There is no change to the overall composition of Thai Union’s major shareholders, as Mitsubishi Corporation was already the fourth-largest shareholder and sat on Thai Union’s board,” Thai Union said. “There will be no changes in the senior leadership team either.”
Mitsubishi said that through the transaction, it plans to closely engage with Thai Union after purchasing the additional stake.
“By accelerating Thai Union’s growth through synergies with our existing businesses, we aim to create a new earnings driver in the seafood business, following our salmon farming business,” Mitsubishi said.
Mitsubishi is also the owner of Cermaq Group, which farms salmon in Norway, Chile, and Canda. Mitsubishi and Cermaq recently acquired the Northern Norway and Canadian assets of fellow salmon-farming company Grieg Seafood, which Mitsubishi said will help expand the company’s business amid an anticipated tightening of supply and demand for salmon.
Chansiri said he agreed with Mitsubishi’s assessment of the transaction and that the new partnership will enhance Thai Union’s competitiveness.
“This partnership, built on decades of trust, will benefit all our stakeholders and solidify our position as a global seafood leader,” he said.
