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Reports: Marubeni seen as victor in Gavilon auction

by Laura Board  |  Published May 8, 2012 at 9:15 AM
auction_227x128.jpgJapanese trading company Marubeni Corp. could be close to agreeing on a $5 billion-plus takeover of agricultural commodities trading company Gavilon LLC.

Media outlets including Reuters reported that Marubeni is in advanced talks about the transaction, though the news agency said it still needs to arrange financing.

Marubeni issued a short statement saying the reports "do not constitute official announcements by Marubeni Corporation."

It added: "No facts relating to this matter have been confirmed. Marubeni Corporation will promptly announce any matters that require disclosure."

Gavilon in January hired Morgan Stanley to review its options. Suitors for the Omaha, Neb. Company are reported to have included Glencore International plc, Bunge Ltd., and Noble Group Ltd., as well as Japan's Mitsubishi Corp. and Mitsui Corp., which both said Monday they didn't plan on making offers, according to Reuters.

Gavilon is owned by asset management firm Ospraie Management LP's private equity fund Ospraie Special Opportunities LP, General Atlantic LLC and Soros Fund Management LLC. The private equity investor group in March 2008 acquired ConAgra Foods Inc.'s commodity trading division, ConAgra Trade Group, for $2.8 billion, and later rebranded the unit as Gavilon LLC.

Marubeni has been an active acquirer of overseas assets in recent months. In March it formed part of a consortium including South Korean steelmaker Posco and South Korean ship builder STX Corp. which struck a A$3.5 billion ($3.63 billion) deal to secure a 30% stake in Australia's Roy Hill iron ore project. Earlier that month Marubeni teamed up with government-backed Innovation Network Corp. of Japan to buy wind farm services company Seajacks International Ltd. from New York buyout shop Riverstone Holdings Ltd for an estimated $850 million.

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Tags: auction | Gavilon LLC | M&A | Marubeni Corp.

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