Japan’s Nissin Food Products Co. has teamed up with Japan Tobacco, the world’s third-largest tobacco firm, to buy local frozen foods group Katokichi Co.
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The deal will create the country’s largest frozen foods firm as the three companies merge together those frozen foods businesses.
Under the agreement, Japan Tobacco will launch a JPY109.2bn (US$1bn) offer for the Katokichi shares it does not already own.
Once the tender is complete, Japan Tobacco will retain a majority interest in Katokichi and transfer a 49% stake in the business to Nissin.
Japan Tobacco said an ageing Japanese population and soaring commodity costs led it to team up with Nissan to snap up Katokichi.
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By GlobalDataThe company added: “The new Katokichi, while consolidating its leading position in the Japanese frozen foods market, will aim to be a global player through future organic growth, new investments and alliances with other domestic food manufacturers.”
