Announcement of Commencement of Tender Offer for Shares in Mitsubishi Shokuhin Co., Ltd.

Mitsubishi Corporation (MC) hereby announces that it has reached an agreement with its subsidiary, Mitsubishi Shokuhin Co., Ltd. (MSK), regarding the privatization of MSK through a tender offer (the “Transaction”). Upon completion of the Transaction, MC will work to strengthen its food distribution business, with MSK positioned at the core, by adopting a more unified management structure with MSK and mutually leveraging the management resources of both companies.For details, please refer to the attached document.

- In the domestic food distribution market, various issues have emerged, including a chronic labor shortage due to the declining birth rate and aging population, rising logistics costs triggered by the so-called “2024 problem” * and growing price-consciousness among consumers in response to inflation. In the medium-to-long term, there are also concerns that competition will further intensify due to the shrinking domestic market as a result of population decline. Against this backdrop, MC expects that food distribution companies are increasingly required to make the functions they provide more sophisticated, improve operational efficiency, and expand their overseas businesses.

- MSK is a core subsidiary of MC’s food distribution business, with a nationwide logistics network covering all temperature ranges — room temperature, chilled, and frozen — and provides a full range of products and services, including processed, frozen, and chilled foods, alcoholic beverages, and confectioneries, to a wide range of business partners such as supermarkets, co-ops, convenience stores, drug stores, and restaurants.

- In Corporate Strategy 2027: “Leveraging our Integrated Strength for the Future,” MC identified reinforcing its earnings base as one of its priorities. Within the food distribution business — one of the earnings bases of MC — MC will expand its logistics business, overseas business, and digital marketing business through M&A, asset expansion, and other measures. MC will also improve efficiency by leveraging digital transformation initiatives.

- Through the Transaction, MC and MSK will be able to mutually leverage the management resources of both companies in a rational and unrestricted manner, and MC will work to achieve MSK’s inorganic growth by implementing value enhancement measures, including further strengthening its wholesale business and expanding its growth businesses, with the aim of providing better lifestyles for consumers.

* Referring to regulations in Japan that limit overtime for truck drivers and impact the logistics industry by reducing the amount of cargo that can be transported.

MC will implement a tender offer for the shares of MSK. If the tender offer is successfully completed, MC will implement a series of procedures to make MC the sole shareholder of MSK (the “Squeeze-Out Procedures”). If the Squeeze-Out Procedures are implemented, the shares of MSK will be delisted through the prescribed procedures.