The renowned Japanese conglomerate, Mitsui & Co., Ltd., is set to make a significant investment in the Industrial Pesquera Santa Priscila (IPSP), a shrimp giant headquartered in Ecuador. This move is part of Mitsui’s ongoing efforts to expand its footprint in the global shrimp industry.

Transaction Details

Mitsui’s investment in IPSP will be executed through a Singapore-based holding company owned by the founders of IPSP. The investment is valued at a substantial USD 360 million, roughly equivalent to JPY 50 billion. Upon completion of the acquisition, IPSP will become a subsidiary of Mitsui, with the equity method being applied.

The transaction is slated for completion in the fiscal year ending March 2024, pending the necessary regulatory approvals.

Strategic Expansion

Mitsui’s decision to invest in IPSP is in line with its broader strategy to establish a strong presence in the shrimp industry. In 2019, the conglomerate made a notable investment in Minh Phu Seafood, the world’s largest shrimp processing company based in Vietnam. This approach aims to position Mitsui as a key global player in the entire shrimp value chain, encompassing upstream activities such as farming, feeding, and cultivation.

Although the financial impact of this acquisition on Mitsui’s consolidated results for the fiscal year ending March 2024 is anticipated to be marginal, the company expresses enthusiasm for its active participation in the shrimp sector. Mitsui looks forward to collaborating with IPSP to spearhead the modernization of the shrimp industry.