April 4, 2012

Japan's Sojitz Corp plans to acquire Huong Thuy Trade, Services and Production Co. and use the latter's infrastructure to expand shares in Vietnam.

The Ho Chi Minh City-based Huong Thuy Co. is the Vietnamese biggest food retailer which provides different kinds of foods and drinks for around 40,000 shops across the country.

Sojitz, which is currently holding a 25.01% stake in Huong Thuy Co., will buy an additional 25.99% of shares while its fellow agency, Kokubu will purchase 19% of shares.

Accordingly, Sojitz will become the biggest shareholder of Huong Thuy and will turn it into Sojitz's subsidiary company.

Sojitz plans to raise Huong Thuy's sales revenues from JPY4 billion (US$48.4 million) in 2011 to JPY20 billion (US$242 million) in 2016 and build a supply chain to Myanmar and Cambodia and then to the whole of Southeast Asia.