Mitsubishi Corp. is offering ¥30 billion ($205 million) to increase its stake in Thai Union Group to 20%, doubling down on food investments as Japan’s trading houses retreat from volatile commodity markets.
The Japanese conglomerate will pay 12.5 Thai baht ($0.39) per share for an additional 13.81% stake in the world’s largest canned tuna producer, representing a 6% premium to Friday’s closing price. Upon completion, Thai Union becomes an equity-method affiliate, elevating Mitsubishi’s influence from its current 6.19% holding.
The tuna bet follows Mitsubishi’s nearly $1 billion acquisition spree in salmon farming last month, where it expanded Norwegian and Canadian operations to boost annual production to 280,000 tons by 2027. Japanese trading houses are pivoting toward stable food businesses as fossil fuel markets remain unpredictable.
Thai Union reported record quarterly results Monday, with gross profit margins hitting 19.7% and earnings per share climbing 18%. Sales of ฿33.4 billion ($1.03 billion) reflected modest organic decline, pressured by weaker U.S. frozen product demand.
The companies have maintained ties since 1991, spanning canned tuna, pet food and frozen seafood operations. Mitsubishi’s distribution networks will bolster Thai Union’s market reach while targeting expanded pet food and premium seafood segments.
Japan aims to source 94% of seafood consumption domestically by 2033, up from 54% currently, providing strategic rationale for Mitsubishi’s protein accumulation. The tender offer awaits regulatory approvals before commencing.
