Itochu indulges its appetite for pulpFriday 20 Apr 2012  In the latest foreign investment by Japan’s voracious trading companies, Itochu Corp. has announced that it has paid US$617.5 million for a 24.9% stake in a Finnish pulp company reports The Wall Street Journal. The move will boost by nearly 50% Itochu’s shipments of pulp, which is used in making paper products, and solidifies the company’s position as the world’s biggest pulp trader.The deal will make the Japanese trading house the second-largest shareholder in Finnish pulp maker Metsa Fibre, the world’s fifth-largest pulp producer. Parent company Metsa Group of Finland will retain 50.2% while board maker M-real and Itochu will have equal stakes of 24.9%. The agreement needs to be approved by European antitrust authorities and is expected to close by the end of June, according to a statement released by Metsa Fibre. With the agreement, the Japanese trading house will be able to move an additional 1 million tons of pulp, boosting its global market share two percentage points to 6%, according to a company spokesman. Itochu, which boasts the top share in the world’s pulp market, handled 2.15 million tons last year. Japan’s seven major trading houses spent a total US$37.08 billion last year on investments and acquisitions – much of it overseas. Itochu spent the most, putting down $11.58 billion on 57 deals, according to research firm Dealogic. |
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