Notice of Dissolution of Strategic Investment
April 21, 2025
ITOCHU Corporation ("ITOCHU") and Charoen Pokphand Group Company Limited ("CPG") entered into a strategic alliance agreement in July 2014 and have achieved synergies through trade and joint investments by leveraging complementary functions in areas such as raw material procurement, product supply, and information gathering.
In consideration of the guidance provided by the revised Corporate Governance Code implemented on June 11, 2021, both parties have engaged in extensive discussions and have agreed to dissolve the strategic investment with the aim of asset substitution.
More than ten years have passed since the partnership was formed, and transactions between the two groups have expanded from primarily the food sector to encompass all business areas. This expansion has resulted in significant growth, reaching approximately 50 billion yen per year—more than five times the scale at the beginning of the partnership.
While the strategic investment is no longer in place*, the strategic business alliance will continue, with the aim of increasing corporate value through the creation of further synergies around the globe. The framework of our strategic business and capital alliance with CITIC Limited (SEHK: 00267), China's largest conglomerate and a constituent of the Hang Seng Index, which began in January 2015, will remain unchanged.
- *CPG is proceeding with the sale of our shares, and as of the end of March 2025, their ownership percentage is 0.461%.