Charoen Pokphand Foods has acquired Hong Kong unit CP Pokphand Co. as part of its strategy to become one of the top three animal-feed firms worldwide, according to the company.

The acquisition will cost roughly US$2.17 billion for a 74.18% stake, but is expected to generate an 18% return on investment per year. The deal will also support CPF's strategy of expanding its business into both China and Vietnam, increasing the contribution from its overseas business from 26% of total revenue to 50%.