CHS, Mitsui & Co. raise stake in Multigrain j.v. in Brazil
October 07, 2008
by Eric Schroeder
INVER GROVE HEIGHTS, MINN. — CHS Inc. has invested an additional $76.25 million in Multigrain A.G., bringing its total cash investment in the Brazilian agricultural joint venture to $134.5 million.
In addition to CHS, Mitsui & Co. Ltd. of Japan also upped its investment in Multigrain, adding $123.7 million. As a result, CHS and Mitsui each own 39.35% of Multigrain, with the remainder (21.30%) held by PMG Trading of Brazil.
Formed in 2006, Multigrain is engaged in the origination and export of soybeans, marketing and export of cotton and sugar, import of wheat, flour production, domestic sales of fertilizers, etc. in Brazil. Through its 100% subsidiary Xingu A.G., Multigrain A.G. also owns Agricola Xingu S.A., which is involved in growing soybeans, corn, and cotton, and in cotton ginning (producing ginned cotton from raw), etc. in Brazil.
CHS and Mitsui said the additional capital is expected to allow Multigrain to expand its grain origination and export facilities, integrated production of soybeans, corn, sugar cane and cotton; and agricultural processing.