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June 03, 2013

Mitsubishi to buy grain company Los Gobo Ceagro do Brasil: Nikkei

Japanese trading house Mitsubishi Corp plans to acquire Brazilian grain company Los Grobo Ceagro do Brasil in a deal worth about 50 billion yen ($495 million), the Nikkei said on Friday.


The amount includes more than 30 billion yen Mitsubishi would lend to Ceagro and over 10 billion yen to be spent on shares purchases from investors such as Argentina's Grupo Los Grobo SA as early as summer, the business daily said.

Mitsubishi will raise its stake in the Brazilian company to 80 percent from 20 percent after the deal, the paper said.

The deal would allow Mitsubishi to sell grains procured by Ceagro in Brazil and Uruguay, in Asian markets, a step that will also help stabilize supply in Japan. Mitsubishi, which handles more than 10 million tons of grain per year, aims to double its collection by 2020, the daily said.

The financing is expected to help Ceagro double its grain trading volume from about 1 million tons per year, the daily said.

Mitsubishi also plans to invest about 10 billion yen in the United States to set up grain collection facilities in Nebraska and North Dakota, the Nikkei said.

indiatimes.com

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