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ihering on 2011-01-20By Yuriy Humber and Ichiro Suzuki
Mitsui & Co. plans to buy 44.2 percent of Brazilian grain broker Multigrain SA from CHS Inc. of the U.S. for 40 billion yen ($482 million), the Nikkei newspaper reported.
The deal will raise Mitsui’s stake in Multigrain to 88.4 percent and the Japanese trading company has plans to make the broker wholly owned, the report said, citing unidentified Mitsui executives. Mitsui wants to become more competitive in the grains market, Nikkei said.
A Tokyo-based Mitsui spokeswoman wouldn’t confirm or deny the Nikkei report, declining to be identified in line with corporate policy. Calls to Sao Paulo-based Multigrain and Minnesota-based CHS went unanswered outside normal working hours.
Mitsui paid $123.75 million to increase its stake in Multigrain to 39.35 percent, Japan’s second-largest trading company said in October 2008. Multigrain in 2007 sold $200 million in new shares to Mitsui and CHS, Mitsui said.
Multigrain owns in excess of 100,000 hectares of farm land, equal to 2 percent of the total cultivated land of Japan, Mitsui said in a 2007 statement.
To contact the reporters on this story: Yuriy Humber in Tokyo at email@example.com; Ichiro Suzuki in Tokyo at firstname.lastname@example.org