ITOCHU Makes Mega-Investment in Chinese Conglomerate
January 28, 2015
ITOCHU Corporation, parent company of ITOCHU International Inc., announced on January 20th that it would join its Thailand-based strategic partner CP Group in making a combined investment of $10.4 billion in CITIC Ltd., China’s largest conglomerate. ITOCHU’s investment, at $5 billion, will be the largest ever in China by a Japanese company. The investment will be made through a joint venture company owned equally by ITOCHU and CP Group. As a result of the investment, which will be completed in two stages this year, the two companies will gain a 20% stake in CITIC. Majority-owned by the Chinese government, CITIC originated in the finance field, where it retains a leading position in China, but has diversified into such areas as real estate, construction, resources and energy and manufacturing.
“This bold initiative, which closely aligns ITOCHU with two of Asia’s leading diversified enterprises, puts the company in a strong position to contribute to -- and benefit from -- the dynamism of a region expected to be the global pace-setter for growth in the coming decades,” said ITOCHU International President & CEO Yasuyuki Harada. “It should also open up new opportunities for us as a key member of the ITOCHU Group based in a market with such close ties to Asia.”
A press release jointly prepared by the three participants in the deal refers to the potential benefits anticipated by ITOCHU and its partner: “By owning a meaningful stake in China’s largest conglomerate, C.P. Group and ITOCHU are gaining a valuable opportunity to participate in China’s growth.”
To see the full texts ITOCHU Corporation’s postings on the CITIC investment, go to: