August 9, 2007

Mitsui to acquire 25 percent of Brazil's Multigrain

Mitsui & Co. will acquire a 25 percent interest in Multigrain, a Brazilian grain handler that exports large quantities of soybeans, The Nikkei reported in its Thursday (August 9) morning edition.

Mitsui has agreed with the two current leading shareholders to acquire a 25 percent stake in Multigrain's Swiss-based holding company of the same name for an estimated Y3 billion.

Multigrain exports 1.5 million tonnes of soybeans annually to Japan, China and elsewhere - equivalent to more than a third of Japan's total annual soybean consumption.

Mitsui will turn Multigrain into an equity-method affiliate and take seats on the company's board. It aims to use its relationship with Multigrain to establish itself as a stable supplier of soybeans to food producers and other firms in Japan.

The investment by Mitsui will give Multigrain greater ability to procure funds. It plans to use the opportunity to build more collection sites and harbour facilities and to expand its financing services to soybean farmers.