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Descente takes steps to appease major shareholder

25/03/2019
Japanese sportswear brand Descente has agreed to replace its president with an executive from Itochu, the industrial group that is attempting to take it over.

Masatoshi Ishimoto, a member of the family that founded Descente in the 1930s, will be replaced by Shuichi Koseki, a senior member of Itochu’s textile executive team. 

Mr Ishimoto had previously expressed opposition to Itochu’s plan for an ambitious expansion of Descente’s business in China. This was one of a number of ways Itochu said Descente could grow. 

The disagreement sparked a hostile takeover battle between the companies. Since then, Itochu has upped its stake in Descente to 40%. According to Japanese media, this stake means it can now veto major decisions.

The takeover dispute now seems to be at an end, with Descente shareholders expected to approve Mr Ishimoto’s removal at its annual general meeting in June. 

Related stories:

Japanese involvement in Shandong Ruyi acquisition 06/03/2019
Tensions grow between Descente and major shareholder 11/02/2019
Descente has big China plans 17/01/2019

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