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Mitsui to Participate in Starzen Co., Ltd.

May 12, 2016


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Mitsui & Co., Ltd. ("Mitsui", Head Office: Tokyo, President and CEO: Tatsuo Yasunaga) has decided to subscribe to a third-party new share allotment carried out by Starzen Co., Ltd. ("Starzen", Head Office: Tokyo, President and Representative Director: Tsuyoshi Nakatsuhama), a leading player in the Japanese meat industry, and to acquire treasury shares held by Starzen for a total of approximately ¥4.3billion. As a result of this subscription and acquisition, Mitsui's total stake including its existing shareholding in Starzen will reach 16.39% of the outstanding balance of Starzen's issued shares, and Starzen will become an equity method affiliate of Mitsui.

Major changes are anticipated in the environment surrounding Japan's meat industry, including Japan's falling birthrate and ageing population, an increase in imported livestock products as a result of the lowering and abolition of import tariffs when the TPP comes into effect, the impact that this will have on Japan's livestock producers and production volumes, and an acceleration in the restructuring of the industry. Globally, continued growth in demand for meat and an increase in related trade volume are expected as a result of a rapid expansion in the size of the middle-income class brought about by economic growth.

Mitsui conducts a wide range of business in meat and livestock-related fields, such as the import and sale of raw materials for animal feed, as well as the manufacture and sale of compound animal feed, the processing, manufacture, and sale of chicken meat, and the production and sale of breeding pigs via its affiliated companies. In addition to this existing business, in order to further develop and expand business in the meat and livestock product fields, Mitsui enters into a capital alliance with Starzen, which is a leading company in the meat industry and possesses a wide customer network across Japan and a powerful meat sales and distribution network, with the aim of further strengthening its business platform in meat industry fields.

Mitsui will work to enhance the corporate value of Starzen by drawing on its own global network and creating synergy from collaboration with Mitsui & Co. group companies, and also strive to contribute to the development of the meat industry and to stable supply to satisfy increasing demand for meat, through the joint operation of meat business in Japan and overseas.

Profile of Starzen

Name of Company Starzen Co., Ltd.
Head Office Minato-ku, Tokyo
Representative Tsuyoshi Nakatsuhama, President and Representative Director
Established June 17, 1948
Capital ¥11,027,772,601 (after May 31, 2016)
Employees 2,314 (as of March 31, 2016)
Business Activities Processing and sale of meat, and manufacture and sale of meat products and food products, etc.

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