Marubeni Corp, a Japanese trading house states that it will cut its planned takeover deal over Gavilon's energy business. The Marubeni has reduced the proposed transaction with the US commodity merchant to US$2.6 billion plus debt.
The original term for the purchase was at US$5.6 billion. This was inclusive of the US$2 billion debt. The trading company stated modification on terms in a statement on Monday.
According to the said statement, Marubeni Corp will purchase all of the assets and businesses of Gavilon. However, the agreement does not include the energy arm of the firm.
The statement did not give any information regarding assumed debt specified in the revised deal. Meanwhile, sellers would receive US$2.6 billion in cash from having retained the energy business still according to the released statement.
On Friday, the move was confirmed through a Reuters report.
Marubeni Corp is Japan's fifth largest trading house. The company has experience in trading natural gases in the US.
Join the Conversation