SINGAPORE - Commodity firm Olam International and Japan's Mitsubishi Corporation have teamed up to tap on opportunities in the Australian grains business via a wholly-owned subsidiary.
Mitsubishi will invest US$64 million (S$80 million) for an 80 per cent stake in Olam Grains Australia, which is involved mainly in origination, trading, logistics and marketing activities.
It also has a 32.5 per cent stake in Newcastle Agri Terminal, a grain port in Australia.
Olam will continue to hold the remaining 20 per cent of Olam Grains Australia, which is valued at US$80 million.
Mr KC Suresh, the president of Olam and the global head of its grains business, said the company plans to invest in procurement and logistics to scale up its presence in Australia.
The transaction is expected to be completed in early financial year 2015.