Marubeni is set to buy US grain trader Gavilon
MARUBENI, the Japanese trading house, is nearing a deal to buy US grain trader Gavilon for more than $5bn (£3.2bn) and could announce the transaction as early as today, according to people familiar with the deal.
Japan’s fifth-largest trading company has been in advanced talks to buy Gavilon since early May.
The company has confirmed its interest in Gavilon but also said no decision had been made.
Although the deal is pending final approval, the proposed terms value Gavilon at more than $5bn including debt, and Marubeni has lined up financing for the deal, sources close to the matter said.
Marubeni had earlier dispatched a team of auditors to Gavilon’s Nebraska headquarters to assess its operations and finances, sources said.
In addition, Marubeni president Teruo Asada traveled to New York last week with other executives as discussion of the deal reached the final stages, a person familiar with the trip said.
Gavilon, whose owners include billionaire investor George Soros and hedge fund manager Dwight Anderson, is the US’s third-biggest grain handler. The deal would deepen Marubeni’s control of grain supplies from North America and help it increase its share of the lucrative business of exporting grains to China.