Japanese conglomerate acquires 35 percent of Vietnamese shrimp company

Mitsui & Co. has struck a $150 million deal to acquire a 35.1 percent stake in Minh Phu Seafood JSC.

Minh Phu accounts for approximately 20 percent of Vietnam's total shrimp exports. Photo acquired by VnExpress

Mitsui, one of the largest sogo shosha (general trading companies) in Japan, has announced that it has struck a deal this week with Minh Phu, which it calls the "world's biggest shrimp integrator".

The Vietnamese firm owns two processing plants and shrimp farms covering an area of 900 hectares in the south of the country. The firm has integrated all stages of shrimp production in its operations, from shrimp farming, to processing and sales.

Minh Phu accounts for approximately 20 percent of Vietnam's total shrimp exports. The shrimp company currently exports its products to around 50 countries, including the U.S. and Japan.

In 2013, Mitsui invested in Minh Phu Hau Giang Joint Stock Company (MPHG), a processing plant affiliated to Minh Phu. Since then Mitsui has contributed to optimizing MPHG’s operations and management, it said.

"By investing in the parent company, Mitsui will be able to apply the initiatives developed inside MPHG to the entire Minh Phu group, and to leverage the sales networks established by Mitsui's global group to expand the company's sales," Mitsui said in its announcement.

According to Mitsui, the acquisition of a major stake in Minh Phu is pursuant to its medium term management plan to focus on nutrition and agriculture as new growth areas.

Mitsui & Co., Ltd. engages in general trading. It has mostly operated in iron and steel production, minerals and metal resources, machinery and infrastructure, chemicals, and energy.

The company was founded on July 1, 1876 and is headquartered in Tokyo, Japan.

Minh Phu recorded consolidated revenues of VND17 trillion ($726.5 million) in 2018, up 7.9 percent over the previous year. Its consolidated after-tax profits for the year grew by 13.4 percent, to VND810 billion ($34.67 million).