A majority stake in the Brazilian grain company is said to be acquired by Mitsubishi. A proposed 50 billion yen worth of deal was offered to Los Grobo Ceagro. This would convert to a huge amount of US $495 million, which is a good move considering Los Grobo Ceagro is a major grain company in Brazil that has a wide scope of clients.
The proposed deal includes lending Ceagro a branch of Argentine grains. The producer Los Grobo SA was also said to be lent 30 billion yen and another 10 billion yen for purchase of investor shares. Once the deal pushes through, Mitsubishi would take over a total of 80 percent of the firm. However, the date of the effect of said deal was not mentioned by unnamed sources.
The additional capital coming from Mitsubishi would help Ceagro to increase its trading volume. From the current 1 million tonnes annually produced, it would double when financial aid is received.
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