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Mitsui to Participate in Chile Atlantic Salmon Farming, Processing & Sales Business

Oct. 2, 2015


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Mitsui & Co., Ltd. ("Mitsui", Head Office: Tokyo, President and CEO: Tatsuo Yasunaga) has agreed to acquire an equity interest in Salmones Multiexport S.A. ("Salmex"), a subsidiary of a major Chilean salmon farming, processing and sales company, Multiexport Foods S.A. ("Multiexport"), by subscribing for newly issued shares (the "Subscription"). In addition to the Subscription, Mitsui will contribute its shares currently held in Salmex's subsidiary Multiexport Pacific Farms S.A. ("MPF") to Salmex (the "Contribution"). As a result of the Subscription and Contribution, Mitsui will own 23.4% of the total issued and outstanding shares of Salmex for approximately US$101 million (approximately ¥12.1 billion).

Against the backdrop of an increasing global population and rising standards of living, demand for a source of high-quality, animal-based protein in the form of fishery products is increasing each year, and the need for renewable aquaculture products is growing. Mitsui has focused attention on the salmon business, given its international marketability and established farming technology. Among the limited number of regions suited to salmon farming, in 2013, Mitsui, through its subsidiary, Mitsui & Co. (U.S.A.), Inc., made its first investment in the salmon business in Chile (which is expected to have room for increased production) through an equity participation in MPF, and has been engaged in the Coho salmon and trout farming business for Asian countries, including Japan. Based on this business experience, we will now contribute our shares in MPF to Salmex, the parent company of MPF. As our second salmon business project, we will participate in the core business of Multiexport — the farming, processing and sales of Atlantic salmon, a major globally-distributed product — to further expand Mitsui's salmon business in Chile.

Multiexport is a major Chilean salmon company, which owns integrated production facilities for everything from farming to processing and sells smoked salmon, fillets, sliced raw fish (sashimi) and other products farmed and processed by its group companies to major markets, including the U.S., Brazil and Japan.

Mitsui has sold Multiexport products mainly to the Japanese market for around 20 years. While working to realize an even more stable market supply, through our investment in Salmex we will utilize its group network to expand sales channels to the global market, which is expected to see increased demand, and to increase the corporate value of Salmex. Furthermore, through the joint business with Multiexport, we will contribute to the development of the Chilean salmon industry.

Investment Structure

Investment Structure

Profile of Multiexport

Company name Multiexport Foods S.A.
(listed on the Santiago Stock Exchange in Chile)
Head office Puerto Montt, Chile
Establishment 1983
Capital US$153 mil (as of end-June 2015)
Representative José Ramón Gutiérrez, Executive Chairman
Business activities Farming, processing and sales of fishery products, mainly salmon and trout

Profile of Salmex

Head office Puerto Montt, Chile
Establishment 1987 (established as Alimentos Multiexport)
Shareholders (after Mitsui investment) Multiexport: 76.6%
Mitsui: 23.4%
Representative José Ramón Gutiérrez, Executive Chairman
Business activities Farming, processing and sales of Atlantic salmon, Coho salmon, and trout

Seawater farming site

Seawater farming site

Processing factory

Harvest

Harvest

Harvest

Notice:
This announcement contains forward-looking statements. These forward-looking statements are based on Mitsui's current assumptions, expectations and beliefs in light of the information currently possessed by it and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui's actual results, financial position or cash flows to be materially different from any future results, financial position or cash flows expressed or implied by these forward-looking statements. These risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest Annual Securities Report and Quarterly Securities Report, and Mitsui undertakes no obligation to publicly update or revise any forward-looking statements.
This announcement is published in order to publicly announce specific facts stated above, and does not constitute a solicitation of investments or any similar act inside or outside of Japan, regarding the shares, bonds or other securities issued by us.

Information

For inquiries on this matter, please contact

Mitsui & Co., Ltd.
Corporate Communications Division
Hiroo Yoshida
Telephone: +81-3-3285-7564
Facsimile: +81-3-3285-9819