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.

Gavilon deals in grains, oilseeds, oils and fats, dairy products, feed ingredients; renewable fuels, petroleum products, natural gas, natural gas liquids, and fertilisers.

The company also provides risk and price management and logistics services to move its materials from production centres to the marketplace.

Gavilon has around 320 million bushels of storage in the US, and handles about 20 million metric tons of grain annually. It is the third-largest grain handler in the US after Cargill and Archer Daniels Midland Co.

The proposed acquisition will propel Marubeni, which handles about 22 million metric tons of grain annually, as the largest exporter of US grains and oilseeds to China, beating Archer-Daniels-Midland. China is the world's biggest importer of soybeans and the fast-growing buyer of corn.

"We are pleased that our strategic review process has resulted in an agreement to become a wholly owned subsidiary of Marubeni," said Greg Heckman, president and chief executive officer of Gavilon. "As part of a larger trading organization, Gavilon will be well-positioned to more efficiently connect supply with growing global demand.

"Marubeni and Gavilon share a similar focus on customers, employees, growth and risk management, and we anticipate minimal changes to our organization and operations," he added.