Thailand’s food giant Charoen Pokphand Group is to buy the remaining shares in C.P. Pokphand to become the sole owner of the livestock, aquafeed and packaged-food group.
Charoen Pokphand will acquire a 23.8% stake from Japan’s Itochu Corp., its fellow shareholder, for $1.1bn.
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Charoen Pokphand Group and Itochu teamed up in 2014 to work together in areas including procurement and product supply.
Under the terms of that deal, Charoen Pokphand Group bought a stake in Itochu and the Japanese business acquired a position in the Hong Kong-based C.P. Pokphand.
Four years ago, Charoen Pokphand Group increased its stake in C.P. Pokphand to 75% and delisted the business. Since then, the Thai company has built its stake to 76.2%. It also now only has a 0.5% stake in Itochu.
“Being the sole shareholder will allow CPF to have greater flexibility in
management and be able to carry out strategic operations more effectively,” Charoen Pokphand Group said in a stock-exchange filing yesterday (21 April).
C.P. Pokphand’s principal markets are China and Vietnam. The company’s businesses in China include poultry farming and packaged food.
In 2024, Charoen Pokphand Group, which operates in 17 markets, generated revenue of Bt580.75bn, down 1% on 2023. The company pointed to lower poultry sales in China.
However, the group made a net profit of Bt19.56bn, versus a loss of Bt5.21bn in 2023.
Lower farming costs, improved swine prices and higher profits form joint ventures boosted Charoen Pokphand Group’s bottom line, it said.
