Trading house Itochu has said it will spend ¥220 billion ($1.5 billion) to take full control of two units, including apparel company Descente, and buy back ¥150 billion worth of its own shares.

The deals are part of a trend among Japanese companies to dissolve dual listings of parent and subsidiary companies to enhance corporate governance and improve operational efficiency.

Itochu, which owns 44.44% of Descente, said Monday that it will invest ¥182.6 billion to buy the remaining stake through a tender offer of ¥4,350 per share, a 16.6% premium to Friday's closing price.

It will also spend ¥37.6 billion to buy the 44.31% it does not own in chemicals company CI Takiron via a tender offer of ¥870 per share, a 9.7% premium to Friday's closing price.

Itochu aims to start the tender offer for Descente by early November, following sign-off from competition authorities in Japan and China, while the tender for CI Takiron will be conducted from Tuesday to Sept. 18.

"We want to make Descente the core of our textile business," Itochu finance chief Tsuyoshi Hachimura told a news conference, highlighting its growth potential as a sports apparel brand in Japan and overseas.

The spending is part of Itochu's record ¥1 trillion investment plan in growth areas for the current financial year, announced in April.

The company also said it would conduct a ¥150 billion share buyback program announced in April from Tuesday through March 31, as part of a goal to achieve a 50% total shareholder return ratio this year.

Net profit at Itochu, in which U.S. investor Warren Buffett holds a stake, fell 3.1% to ¥206.6 billion in the April to June quarter due to lower profits at its energy and chemicals business and its metals business, but the company stuck to its full-year profit forecast of ¥880 billion.