Marubeni to acquire Gavilon Group for $3.6 bn

Japan's fifth-largest trading house Marubeni Corp today said that it is acquiring US grain and energy trader Gavilon Group, for $3.6 billion in order to become one of the world's largest grain trading companies.

The deal includes assumption of debt of around $1.7 billion.

The proposed deal, if completed, would be the biggest-ever acquisition by Marubeni and the, largest overseas acquisition by a Japanese trading house since Mitsubishi bought a 24.5-per cent stake in the southern Chilean properties of Anglo American for $5.39 billion in November 2011.

In January Gavilon had hired Morgan Stanley as advisor to the sale and potential bidders included Marubeni's domestic rival trading houses Mitsubishi Corp and Mitsui & Co, Swiss commodities giant Glencore International Plc, US agri giant Bunge Ltd and Singapore's Wilmar International Ltd.

Omaha, Nebraska-based Gavilon, formerly known as ConAgra Trade Group, has one of the world's largest fertilizer distribution networks, as well as the third-biggest US grain-merchandising operation.

It is majority owned by billionaire investor George Soros' Soros Fund Management, and hedge fund manager Dwight Anderson's Ospraie Management.