CP Foods Acquires Full Control of CPP in $2.3 Billion Deal with Itochu
Thailand's CP Foods completes acquisition of full ownership of CP Pokphand after purchasing Itochu Corporation's remaining stake.
CP Foods Consolidates Full Ownership of CP Pokphand
Thailand's Charoen Pokphand Foods (CP Foods) completed its acquisition of full ownership of CP Pokphand (CPP) after purchasing Itochu Corporation's remaining stake in a transaction valued at approximately $2.3 billion. The deal, which closed in the third quarter of 2025, consolidates CP Foods' control over one of Asia's largest integrated agri-food platforms.
CP Pokphand's Operations
CPP operates an extensive network of animal feed mills, livestock farms, and food processing facilities across China, Vietnam, and other Southeast Asian markets. The company is a cornerstone of the Charoen Pokphand Group's food business and plays a central role in CP Foods' strategy to become a global leader in sustainable protein production.
Itochu's Strategic Shift
Itochu, the Japanese trading house, had held its stake in CPP as part of a long-standing partnership with the CP Group. The divestment is expected to contribute approximately $888 million to Itochu's net profit for the fiscal year ending March 2026. For Itochu, the sale reflects a strategic shift toward other growth areas within its portfolio, including digital commerce and renewable energy investments.
Streamlining the Supply Chain
For CP Foods, full ownership of CPP eliminates the need for minority partner coordination and allows the Thai conglomerate to streamline decision-making across its food supply chain. The company has indicated that it plans to accelerate investments in automation, cold chain logistics, and food safety technology across CPP's operations.
Asia's Expanding Food Market
The acquisition positions CP Foods to capitalize on the expanding food market in Asia, which is projected to generate $73.5 billion in revenue in 2025 and grow at an annual rate of nearly 5% through 2030. Asia's rising middle class, increasing urbanization, and shifting dietary preferences toward animal protein are driving structural demand growth across the region's food industry.
Consolidation in Southeast Asia's Agri-Food Sector
The deal also highlights the ongoing consolidation trend in Southeast Asia's agri-food sector, where scale and vertical integration are becoming increasingly important competitive advantages.
