Materials| Industrials |Commodities

Rahul Jain

Equity Bottom-Up

<ul>
<li>Mitsui &amp; Co. has delivered robust earnings and cash flows, fueled by commodity tailwinds and disciplined capital returns over the last 5 years.</li>
<li>Looking ahead, the company plans to rebalance its portfolio through increased exposure to LNG and energy transition assets </li>
<li>However, muted near-term growth and persistently low ROCE—driven by scattered, low-control holdings—suggest limited upside until newer investments begin contributing meaningfully to the bottom line.</li>
</ul>


Mitsui &amp; Co. has delivered robust earnings and cash flows, fueled by commodity tailwinds and disciplined capital returns over the last 5 years.
Looking ahead, the company plans to rebalance its portfolio through increased exposure to LNG and energy transition assets 
However, muted near-term growth and persistently low ROCE—driven by scattered, low-control holdings—suggest limited upside until newer investments begin contributing meaningfully to the bottom line.


Mitsui & Co. (8031.T): Strong Cash Flows, Weak Growth Despite Portfolio Shift

Breaking Down the Mining News of the Day, Money of Mine

Money of Mine

Breaking Down the Mining News of the Day

An ex-underground miner, an ex-investment banker, and an ex-equity research guy breaking down the mining news of the day. It's a bit of entertainment, information, and occasionally some alpha.

<ul><li>Huge deal with Mitsui purchasing a 40% stake in Roads Ridge for billions of dollars</li><li>Decades-long negotiation process with owners of the asset culminating in the sale</li><li>Roads Ridge is a massive iron ore deposit with potential for long-term production, standing out for its high quality iron content and low phosphorus levels in comparison to other mines in the region</li></ul><p><em>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.</em></p>

Huge deal with Mitsui purchasing a 40% stake in Roads Ridge for billions of dollarsDecades-long negotiation process with owners of the asset culminating in the saleRoads Ridge is a massive iron ore deposit with potential for long-term production, standing out for its high quality iron content and low phosphorus levels in comparison to other mines in the regionThis content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

Tracking developments across tech supply chains, Tech Supply Chain Tracker

Tech Supply Chain Tracker

Tracking developments across tech supply chains

<ul><li>German government approves financing for TSMC's fab in Dresden, boosting semiconductor production in Europe.</li><li>Kaynes Semi secures anchor customer in power electronics, bolstering its position in the market.</li><li>Suchi Semicon opens Gujarat's first OSAT facility; Google appoints new India head to advance AI technology.</li></ul>

German government approves financing for TSMC's fab in Dresden, boosting semiconductor production in Europe.Kaynes Semi secures anchor customer in power electronics, bolstering its position in the market.Suchi Semicon opens Gujarat's first OSAT facility; Google appoints new India head to advance AI technology.

Tech Supply Chain Tracker (18-Dec-2024): German gov funds TSMC's Dresden fab.

Expert on Japan Retail and Consumer Markets, JapanConsuming

Michael Causton

Expert on Japan Retail and Consumer Markets

Real Insight on Japanese Consumer Markets

JapanConsuming

JapanConsuming is a specialist research firm producing intelligence on Japanese retail and consumer markets. Founded in 2000, JapanConsuming has become the leading provider of insights on Japanese retailers and consumer trends to retailers, brands, government agencies and investors. As well as a highly regarded monthly report on the market, JapanConsuming produces in-depth reports on retail sectors, seminars on key trends and telephone consulting to investors on trends and retailers.

JapanConsuming was founded by Michael Causton and Roy Larke. 

Thematic (Sector/Industry)

<ul>
<li>Consumer distribution has been transformed since 2020 through accelerated concentration of market share. While some has come about through organic growth, the real drivers have been M&amp;A and MBOs. </li>
<li>The result is a realignment of the retail leader board as companies like PPI, Welcia and Trial buy their way to the top, while others, notably Seven &amp; I, shrink.</li>
<li>Here we identify the retail leaders in driving consolidation going forward, and the intensifying pressure on both smaller retailers and the wholesalers that supply them.</li>
</ul>


Consumer distribution has been transformed since 2020 through accelerated concentration of market share. While some has come about through organic growth, the real drivers have been M&amp;A and MBOs. 
The result is a realignment of the retail leader board as companies like PPI, Welcia and Trial buy their way to the top, while others, notably Seven &amp; I, shrink.
Here we identify the retail leaders in driving consolidation going forward, and the intensifying pressure on both smaller retailers and the wholesalers that supply them.


[Japan M&A] Who Owns Who: The Growing Concentration of Power in Japanese Consumer Markets

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Yesterday a news article from Bloomberg suggested 7&amp;i was "considering" an MBO. <a href="https://www.smartkarma.com/entities/seven-i-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:1041:1" rel="noopener">Seven &amp; I Holdings (3382 JP)</a> later confirmed they had received a non-binding proposal from ITO Junro/family.</li>
<li>The initial number was ¥9trln. If market cap? High. If EV, too low. That would have implied a price just over the first "grossly inadequate" ACT price.</li>
<li>There is a lot we don't know. This changes the landscape. It probably shifts the range trade, but it will shift more when we get more clarity on ITO-san's price.</li>
</ul>


Yesterday a news article from Bloomberg suggested 7&amp;i was "considering" an MBO. Seven &amp; I Holdings (3382 JP) later confirmed they had received a non-binding proposal from ITO Junro/family.
The initial number was ¥9trln. If market cap? High. If EV, too low. That would have implied a price just over the first "grossly inadequate" ACT price.
There is a lot we don't know. This changes the landscape. It probably shifts the range trade, but it will shift more when we get more clarity on ITO-san's price.


7&I (3382 JP) - An ITO Family MBO? With Itochu? At ¥9trln? Maybe. Information Is Scarce

Japan

MITSUI & CO., LTD. is a general trading company.  The Company has operating groups including Iron and Steel, Non-Ferrous Metals, Machinery, Chemicals, Foods, Energy, Textiles, and General Merchandise.  Mitsui also operates real estate and overseas development projects.

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Mitsui & Co Ltd (8031 JP)

Mitsui & Co. (8031.T): Strong Cash Flows, Weak Growth Despite Portfolio Shift

Mitsui & Co. has strong earnings from commodities, but limited growth due to scattered holdings and low ROCE; plans to focus on LNG and energy...

Rahul Jain

Unpacking a $20b undeveloped mine deal

Mitsui acquires a 40% stake in Roads Ridge, a large-scale undeveloped iron ore deposit in Western Australia, for US $13 billion, with plans for...

Money of Mine

Tech Supply Chain Tracker (18-Dec-2024): German gov funds TSMC's Dresden fab.

German gov backs TSMC's fab in Dresden, Kaynes Semi gains anchor customer, Suchi Semicon opens OSAT facility in Gujarat, Google appoints new head...

Tech Supply Chain Tracker

[Japan M&A] Who Owns Who: The Growing Concentration of Power in Japanese Consumer Markets

Consumer distribution has shifted post-2020, with market concentration driven by M&A and MBOs. We identify the leaders of this consolidation,...

Michael Causton

7&I (3382 JP) - An ITO Family MBO? With Itochu? At ¥9trln? Maybe. Information Is Scarce

An MBO for Seven & i by the ITO family? Maybe. And the number was big (¥3450/sh), unless it was small (¥2,300/sh), and we don't know which. But it...

Travis Lundy

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52-week Range

Market Cap (USDm)

P/E

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Mitsui & Co. (8031.T): Strong Cash Flows, Weak Growth Despite Portfolio Shift

​Mitsui & Co. has strong earnings from commodities, but limited growth due to scattered holdings and low ROCE; plans to focus on LNG and energy...

Rahul Jain

Unpacking a $20b undeveloped mine deal

Mitsui acquires a 40% stake in Roads Ridge, a large-scale undeveloped iron ore deposit in Western Australia, for US $13 billion, with plans for...

Money of Mine

Tech Supply Chain Tracker (18-Dec-2024): German gov funds TSMC's Dresden fab.

German gov backs TSMC's fab in Dresden, Kaynes Semi gains anchor customer, Suchi Semicon opens OSAT facility in Gujarat, Google appoints new head...

Tech Supply Chain Tracker

[Japan M&A] Who Owns Who: The Growing Concentration of Power in Japanese Consumer Markets

​Consumer distribution has shifted post-2020, with market concentration driven by M&A and MBOs. We identify the leaders of this consolidation,...

Michael Causton

7&I (3382 JP) - An ITO Family MBO? With Itochu? At ¥9trln? Maybe. Information Is Scarce

An MBO for Seven & i by the ITO family? Maybe. And the number was big (¥3450/sh), unless it was small (¥2,300/sh), and we don't know which. But it...

Travis Lundy

Mitsui & Co. has strong earnings from commodities, but limited growth due to scattered holdings and low ROCE; plans to focus on LNG and energy...

Consumer distribution has shifted post-2020, with market concentration driven by M&A and MBOs. We identify the leaders of this consolidation,...