January 30, 2012

Mitsubishi to invest US$45 million in Brazilian grain firm

To be able to take a 20% stake in major Brazilian grain firm Los Grobo Ceagro do Brasil SA and acquire the preferential right to buy soy and other grains from the firm, Mitsubishi Corp. said Friday (Jan 27) that it will invest about JPY3.5 billion (US$45.6 million).

Ceagro will allocate new shares to the major Japanese trading house as early as next week. At least one official from Mitsubishi will sit on Ceagro's board.

Mitsubishi aims to boost grain procurement in northern and central Brazil and secure stable supply to Japan and China.

On the back of growing demand in Asia, Mitsubishi plans to boost its annual grain trade from 10 million tonnes in 2011 to 20 million tonnes in 2015.