Mitsui Buys 10% in Sodrugestvo Agribusiness

Japan’s Mitsui has signed a deal to take a 10-percent stake in Sodrugestvo with both companies becoming strategic partners in some of their respective business activities, the two companies said in a statement on Tuesday.

“Mitsui Co., Ltd. came to an agreement of 10 percent participation in Sodrugestvo Group S.A., the largest oilseed crusher in Russia. Mitsui also agreed to have strategic alliance with Sodrugestvo and cooperate in the grain export business,” the statement said.

The details of the transaction were not disclosed, but Mitsui’s 10 percent stake in Sodrugestvo is based on an enterprise value of approximately $2.2 billion, Sodrugestvo said.

Under the strategic alliance agreement, Mitsui will enjoy a preferential right to export and merchandize the grains Sodrugestvo harvests in Russia and the former Soviet republics. Mitsui also intends to cooperate in the feedstuff and livestock business in Russia and former Soviet republics where demand has been on the rise, the companies said.

Sodrugestvo operates crushing plants in Russia’s westernmost region of Kaliningrad on the Baltic coast and also owns grain business assets.

“Making the best use of these assets, Sodrugestvo has established an integrated supply system of raw materials for feedstuffs. In addition, Sodrugestvo is launching a grain export business in full swing this fall; to export grains produced in Russia and former Soviet republics to Europe, Africa and the Middle East,” Sodrugestvo said.


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