The remaining 60% stake in the Brazilian shrimp producer will be held by three existing shareholders.
The deal will be finalized in one month’s time, according to a Stock Exchange of Thailand filing yesterday (April 18). The cost only represents 0.1% of CP Food’s assets, according to a Bangkok Post article.
CP Foods, part of agribusiness conglomerate Charoen Pokphand Group, indicated primary interest in the R&D side of the Camanor business. Its farming technology, which is called AquaScience, is said to increase farm productivity, boosting the yield per area to grow shrimp in a high-density environment without using chemicals or antibiotics.
Market diversification and competitiveness
Adirek Sripratak, CP Foods chairman, said the deal will “strengthen CPF’s competitiveness” in the global shrimp business in terms of feed production, genetics improvement and shrimp processing capacity.
It will also allow the Thai company to “extend businesses including feed and hatchery.”
CP Foods added that the move also adds diversification, in terms of geography, to its shrimp production, which is mainly based in Thailand.
He said Brazil is a major source of agricultural raw materials used in shrimp feed manufacture, and is a market brimming with a potential and a sizable population and economy.
Camanor saw its net profit more than triple to $4.3m last year. The company is a major shrimp producer in Brazil, according to CP Foods. Its fresh and frozen processed shrimp are shipped domestically and abroad to markets such as France.