Takeda, House Foods to form business alliance
Reach a basic agreement to establish a new joint venture, to which all the business of Takeda Food Products, Ltd. will be transferred.
27/12/05 House Foods Corporation ("House Foods") and Takeda Pharmaceutical Company Limited ("Takeda") has announced that both parties have reached a basic agreement to establish a new joint venture, to which all the business of Takeda Food Products, Ltd. ("Takeda Food") will be transferred. This agreement is subject to the approval by Japan Fair Trade Commission in view of the antimonopoly act.
House Foods and Takeda will own 66% and 34% of the shares of the new joint venture respectively, and it is scheduled to start its operation in April 2006. Eighteen months later, the 34% shares owned by Takeda will be transferred to House Foods and the joint venture will become a wholly owned subsidiary of House Foods.
House Foods has a main line of products of processed cooking preparations such as curry and stew mixes, retort foods and spices, while it is nurturing beverage and health food products as the future core business. This agreement will support House Foods strategies to expand such business by adding the Takeda Food' products such as "C1000 Vitamin Lemon" drink and "C1000 Lemon Water" and others. In addition, the synergy effect is expected from the fusion of Takeda Food' development ability centered on vitamin products and House Foods' food-processing technology.
