BREAKING - Mitsubishi pulls out of Thai Union deal

The reason given is that the offer period closed with insufficient shares tendered by shareholders to meet the minimum threshold of 11.95%.It would have lifted its stake in Thai Union to around 20%.

Now, as agreed, the shares that were intended to be sold will be returned to the respective shareholders. 

The offer period closed on Friday and news of the cancellation was conveyed today.

The offer to acquire shares was part of a broader business alliance agreement between the two companies, aimed at increasing Mitsubishi’s stake and fostering collaboration in the seafood sector. It was also described as part of Mitsubishi’s strategy to increase its exposure to seafood resources.

The Japanese industrial giant Mitsubishi, which recently acquired much of Grieg Seafood’s salmon business through its Cermaq operation, saw the move as a logical one because Thai Union is an important salmon supplier especially in the expanding Far East market.

Thai Union sells a range of finfish products and crustaceans including tuna, shrimp, lobster and crab. The group recorded revenues of £3.33 billion last year.

It also sells frozen and chilled salmon directly to retailers, restaurants, and food service businesses, as well as through retail channels.