Itochu to Acquire Dole's Canned Foods, Beverage Operations
Japan Economic Newswire -- TOKYO, JAPAN -- September 13, 2012 -- Japanese trading house Itochu Corp. said Thursday it is in negotiations to acquire businesses dealing in canned food, beverages and fruits from Dole Food Co. of the United States.Itochu is looking to accommodate demand for fruits and vegetables expected to grow in emerging countries, mainly in Asia, through the envisioned $1.7 billion (300 million yen) deal, an Itochu official said.
The Tokyo-based company hopes to reach an agreement with the U.S. company by the end of this month on the buyout of two operations -- one dealing in canned food and fruit drinks across the world and the other selling and producing fruits and vegetables in Asia, the official said.
Itochu, which plans to establish a new company for the business in November in Tokyo, is also considering putting the Dole brand name on Japanese fruits and vegetables it exports, the official said.
Dole has a market share of some 60 percent in production of canned pineapples in North America and manages large-scale banana and pineapple farms in Asian countries such as the Philippines.
Itochu is looking to utilize the global influence of the Dole brand name and production and sales bases after the envisioned acquisition, the official said.
Itochu also seeks to boost sales of products such as fruits and beverages in emerging countries by using convenience stores of its group firm FamilyMart Co. in Asia and tapping its own sales network in China, the official said.
(c) 2012 Kyodo News International, Inc.
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