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Monday, 26 April 2010, 16:36 HKT/SGT

Source: Mitsubishi Corporation
Shinmei Co., Ltd. and Mitsubishi Corp Agree to Business and Capital Alliance

TOKYO, Apr 26, 2010 - (ACN Newswire) - Shinmei Co., Ltd.(Shinmei) and Mitsubishi Corporation (MC) have announced a business and capital alliance.

1. Purpose of the Alliance

Consumer interest in food safety and quality has increased considerably in recent years. In Asia rice is a staple food, and consumers demand not only a good-tasting product, but a safe and affordable one as well. In Japan, however, the rice market is shrinking due to the declining population, brought on by an aging society and falling birthrate. Furthermore, recent developments in agricultural politics hint of inevitable changes in the rice industry. New demand and new value will need to be created to ensure its survival. It is with these factors in mind that Shinmei and MC decided to form this alliance.

Shinmei is one of the biggest millers, whole sellers and retailers of rice in Japan. The company operates rice mills and a processing and distribution network in Kanto, Kansai and Kyushu. It also boasts an advanced quality control system. Meanwhile MC has various sales channels in retail, the fast-food industry, and the food-service industry. Both companies intend to apply their management resources and know-how to the fullest, in order to establish new, efficient, and stable systems. By combining their unique expertise, Shinmei and MC aim to provide their respective customers with safe and high-quality products and services..

This alliance should help spur new demand, not only for rice consumed at the table, but for rice used in processing and in animal feed as well. It should be effective in promoting exports overseas.

2. Details of the Business Alliance

Both companies will discuss and determine the specific details of this alliance in the following fields:
(1) Production and sales of milled rice
(2) Food business
(3) Other fields to be agreed upon by both companies

3.Details of the Capital Alliance

In order to solidify the business side of this alliance, through a bilateral contract MC will obtain additional Shinmei shares from the latter's existing shareholders. Combined with MC's existing shares, this addition will give the trading company 20% voting rights in Shinmei. This share acquisition is scheduled to take place in April, 2010.

Mitsubishi Corporation

Topic: Press release summary
Source: Mitsubishi Corporation

Sectors: Daily Finance
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