Mitsui & Co is in talks to acquire the remaining stake it doesn’t already own in Brazilian grain broker Multigrain SA from CHS Inc and another shareholder, two people familiar with the discussions said.
The acquisition of a 44.2 per cent stake from CHS would boost Mitsui’s holdings to 88.4 per cent, according to the people, who asked not to be identified because no announcement has been made. Any accord would automatically allow a third shareholder to sell the remaining stake as well, said one of these people, who declined to give financial terms of the deal.
Nikkei newspaper reported earlier today that Mitsui plans to buy CHS Inc’s stake for 40 billion yen ($482 million), according to unidentified Mitsui executives.
The figure is an estimate for the company’s book value and not a potential amount of the stake purchase, according to one of the people who spoke to Bloomberg News.
No agreement has been reached yet and the companies have set a deadline for 1 am New York time tomorrow to conclude discussions, the person said.
A Tokyo-based Mitsui press official wouldn’t confirm or deny the Nikkei report, declining to be identified in line with corporate policy.
A message left at Minnesota-based CHS wasn’t immediately returned. A Multigrain official, who asked not to be named because of company policy, said the broker had no comment.