Marubeni leads race to acquire grain and energy trader Gavilon

Tokyo  Marubeni said Monday it was interested in acquiring US grain and energy trader Gavilon, establishing it as the most likely Asian buyer of the company as rival Japanese trading houses played down the chances they would bid.

"We know that [Gavilon] is up for sale. We are interested, as it is a grains trader that is strong in the United States," Marubeni president Teruo Asada told reporters in Tokyo, although he added no progress had been made in talks.

Several people familiar with the matter said last week that Marubeni, Mitsui and Mitsubishi had all been evaluating bids for all or part of Gavilon, even though they considered the valuation of more than $5 billion (Dh18.36 billion) from the company's owners expensive. The US grain and energy trader is seeking final bids, the sources said.

Japanese buying streak

Mitsui and Mitsubishi both said Monday they were not in negotiations to buy Gavilon, which began exploring a sale in January.

Marubeni's purchase of Gavilon would extend a string of acquisitions marking the emergence of Japan's trading houses as controlling investors in high-profile raw materials projects ranging from oil to iron ore to liquefied natural gas.

Gavilon, whose owners include George Soros and hedge fund manager Dwight Anderson, has a sizeable presence in key US agricultural markets, boasting the third largest US grains marketing network behind Archer Daniels Midland and Cargill.