Japanese conglomerate Mitsubishi Corp. has invested in Myanmar's Capital Diamond Star Group to manufacture and distribute food in the market and regionally.
As part of the deal, Mitsubishi will buy up to 30% of CDSG, which operates across a range of sectors in Myanmar. The two sides will run CDSG's food arm Lluvia as a joint venture.
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Lluvia "aims to expand aggressively in the region" and "aims to be one of Myanmar’s first homegrown regional company with a view towards being one of the leading food companies in Asia", the companies said.
Lluvia aims to invest over US$200m over the next three years in "various businesses across the food value chain to contribute to the development of the food industry in Myanmar", the groups added.
CDSG manufactures wheat flour, tea and coffee in Myanmar. It is also a "major player" in the trading of agricultural commodities, the partners said.
Beyond food, CDSG does business in sectors including retail, real estate development, construction and pharmaceutical.
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By GlobalDataMitsubishi, already the owner of UK food and drinks group Princes, is looking to make further investments in food as part of plans to grow the business.
In February, Mitsubishi announced a deal with Japanese food group Nissin Foods Holdings. Mitusbishi agreed to buy 34% Nissin's instant noodle business in Singapore, India, Thailand and Vietnam. It said: "Entering the market for the manufacture and sale of instant noodles, a staple in Asia, will enable Mitsubishi Corporation to establish food processing and manufacturing as one of its core businesses overseas."
