Mitsui acquires control of Multigrain to raise sales in Asia

TOKYO/NEW DELHI: Japan's trading firm Mitsui & Co Ltd on Thursday said it will acquire 44.2 per cent stake in Brazilian grain broker Multigrain AG for USD 225 million in a move to secure foodgrain to supply in Asian market.

Japan-based Mitsui will buy a 44.2 per cent stake in Multigrain from CHS Inc, boosting its holding in the company to 88.4 per cent, Mitsui said in a statement. With the investment of USD 225 million, Mitsui's total investment in Multigrain will reach to USD 459 million, it added.

"With this acquisition, Mitsui's shareholdings in MAG will increase from 44.2 per cent to 88.4 per cent, making MAG Mitsui's consolidated subsidiary. Mitsui's additional investment is USD 225 million, with total investment of USD 459 million," Mitsui said.

MAG, which engages in the agricultural production business and grain distribution operations in Brazil, has office in India's four metropolitan cities and that in Goa.

"Mitsui will strive to strengthen agricultural production and grain distribution business in Brazil, which has high potentiality of food supply, and to secure a stable supply of grain from Brazil mainly to Asian market, through MAG as a major subsidiary in Mitsui's grain business," the company said.

Besides, Mitsui said it aims to strengthen its grain business as one of its core business areas as global demand for grain is expected to increase as world population grows. Moreover, economy of emerging countries will continue to improve.