Thailand’s food giant, Charoen Pokphand Group, is set to acquire the remaining shares in C.P. Pokphand, positioning itself as the sole owner of the livestock, aquafeed, and packaged-food group.
This strategic move involves Charoen Pokphand purchasing a 23.8% stake from Japan’s Itochu Corp. for $1.1 billion. This acquisition marks a significant enhancement in Charoen Pokphand’s market position.
Charoen Pokphand Group and Itochu initially partnered in 2014 to collaborate on procurement and product supply. Consequently, Charoen Pokphand acquired a stake in Itochu, while the Japanese giant gained a position in the Hong Kong-based C.P. Pokphand.
In a noteworthy development four years ago, Charoen Pokphand increased its stake in C.P. Pokphand to 75% and subsequently delisted the business. Since then, the Thai conglomerate has further augmented its share to 76.2% and currently holds only a 0.5% equity in Itochu.
“Being the sole shareholder will allow CPF to have greater flexibility in management and enable it to carry out strategic operations more effectively,” stated Charoen Pokphand Group in a stock-exchange filing on April 21.
C.P. Pokphand’s primary markets are in China and Vietnam, where it engages in poultry farming and packaged food production.
Notably, in 2024, Charoen Pokphand Group, active in 17 markets, reported revenues of Bt580.75 billion, reflecting a 1% decline from 2023. The company attributed this dip to decreased poultry sales in China.
Nonetheless, Charoen Pokphand Group achieved a net profit of Bt19.56 billion, a significant turnaround from a loss of Bt5.21 billion in 2023. The improved financial performance stemmed from lower farming costs, better swine prices, and increased profits from joint ventures.
