Mitsui & Co. announced on Wednesday that it will expand its ongoing share buyback program to ¥400 billion (US$2.8 billion), the largest in the company’s history. The decision comes as the company’s stock has fallen nearly 30% since reaching a peak in May, prompting the trading house to act flexibly in response to market conditions.
Initially planning to repurchase up to ¥200 billion worth of shares, Mitsui had already acquired ¥172.4 billion by the end of August. The extended buyback period will now run through February 2024, with all repurchased shares set for cancellation.
Following the announcement, Mitsui shares rose as much as 5% before closing up 0.4% at ¥2,837. This buyback is expected to boost total shareholder returns by over 80% to ¥700 billion (US$4.9 billion), accounting for 70% of cash flow in the fiscal year ending March 2025.
Mitsui has indicated that shareholder returns will represent over 40% of its cash flow through March 2026. However, the trading house is balancing these returns with growth investments, eyeing ¥3.6 trillion in potential opportunities beyond its current three-year plan, as noted by CFO Tetsuya Shigeta.
