Japan’s Marubeni says to buy Gavilon for $3.6 billion

TOKYO (Reuters) – Japanese trading house Marubeni Corp is to buy U.S. grains merchant Gavilon for $3.6 billion excluding debt, the company said on Tuesday, confirming an earlier Reuters report.

Gavilon is the third-biggest U.S. grain merchant in terms of the size of its marketing network, behind Archer Daniels Midland and Cargill, and also has large energy and fertilizer trading assets.

Marubeni, Japan’s fifth-largest trading company, had been in advanced talks to buy Gavilon since early May.

People familiar with the matter told Reuters previously that Marubeni had offered to pay around $5.2 billion for Gavilon, including assuming about $1.7 billion of debt the U.S. grain trader had at the end of December.

Acquiring Gavilon would deepen Marubeni’s control of grain supplies from North America, the world’s top grain export hub.



Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s