Ashurst Hong Kong has advised ITOCHU Corporation (ITOCHU) on the implementation of a strategic alliance with Charoen Pokphand Group Company Limited (CPG), one of the leading conglomerates in Asia.

The strategic alliance involves:

• developing joint opportunities and initiatives in the non-resource sector as well as animal feed, livestock and marine related areas;
• a capital contribution by CPG (directly and indirectly through a fund) of approx. US$1 billion in ITOCHU resulting in a shareholding of approx. 4.9% (based on number of shares pre-announcement); and
• acquisition by ITOCHU of 25% of CPG's HK listed investment holding company C.P. Pokphand Co. Ltd. (stock code: 43) for a purchase price of approx. US$795 million.

The Ashurst team was led by Hong Kong managing partner, Robert Ogilvy Watson, assisted by counsel Daniel Öhvall, associates Derek Leung and Winnie Sinn and trainee Lynn Chong.  Mori Hamada & Matsumoto advised on Japanese law.  CPG was advised by Morrison Foerster (Hong Kong and Tokyo).

ITOCHU is one of Japan's leading trading companies present in approximately 130 places in 67 countries.  It engages in domestic trading, import/export, and overseas trading of various products such as textile, machinery, metals, minerals, energy, chemicals, food, information and communications technology, realty, general products, insurance, logistics services, construction, and finance, as well as business investment in Japan and overseas.