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Japan/US: Japanese grain trader saves $1B in revised merger deal

By  |  June 10, 2013

Japan-based trader Marubeni Corp. has reportedly decided to exclude the energy business of US-based grain supplier Gavilon Holdings LLC from its buyout, resulting in a deal worth $1 billion less than the original agreement. The acquisition, first announced in May of last year, will now see Marubeni pay $2.6 billion for the grain company; that number was revised down from $3.6 billion after Marubeni originally agreed to take on more than $2 billion of Gavilon’s debt. According to one expert in Tokyo, the revised deal will prove beneficial to Marubeni as Gavilon’s energy branch would not benefit the Tokyo-based company and thus will save the company financially from excluding it from the offer. According to reports, the buyout will position Marubeni to better outsource corn and soybeans against competitor Cargill Inc.

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