Share Acquisition Agreement with Malaysia's Leading Fertilizer Distributor
July 11, 2012
ITOCHU Corporation (Headquarter: Minato-ku, Tokyo, President and Chief Executive Officer: Masahiro Okafuji, hereinafter “ITOCHU”) has agreed to acquire 25% share of Agromate Holdings Sdn Bhd (Hereinafter “Agromate”), one of the largest fertilizer distributors in Malaysia.
Agromate was founded in 1970. Since then, the company has grown to having total 9 distribution centers of which 7 in Malaysia and 2 in Indonesia. The company handles 1.3 million tons of fertilizers annually and furthermore, it owns a manufacturing company in the state of Sabah, Malaysia which has a manufacturing capacity of 200k tons of NPK compound fertilizers per year, which is one of the largest in Asia.
In midst of global population increase, it is predicted that the need for fertilizer will grow reflecting the need for food, especially in Asia, where a high economic growth and increasing income level are strongly expected.
The agreement was reached when Agromate’s desire to utilize ITOCHU’s network in order to expand its supply source matched ITOCHU’s intention to expand its fertilizer business in Asia.
Fertilizer resource is predicted to become tight in the medium and long term. ITOCHU is aiming to put its resource to collaborate with Agromate to promote new investment in this fertilizer resource industry to build solid business foundation with its main focus in Asia.
|Company name||Agromate Holdings Sdn Bhd|
910-912, Block E, Phileo Damansara 1,
No.9,Jalan 16/11,Off Jalan Damansara,
46350 Petaling Jaya, Selangor Darul Ehsan, Malaysia.
|Distribution centers||7 in Malaysia, 2 in Indonesia|
|Manufacturing plant||1 in Malaysia|
TANG QUEE HUANG(Raymond) CEO
|Sales||Malaysia Ringgit 1.7 billion (2011)|