Brazilian Government Gives Approval for Marubeni Wheat Joint Venture
Brazil’s anti-trust agency, Cade, has granted approval for a proposed joint venture between U.S.-based Gavilon, which is owned by Japan’s Marubeni Corp., and the Brazilian wheat miller and distributor, SA Moageira e Agrícola.
The joint venture was formed when Moageira e Agícola spun off grain elevators located in Irati and Ipiranga in Brazil into a new company which is to be half owned by the Brazilian unit of Omaha, Nebraska-based Gavilon. Moageira e Agrícola, which is owned by Brazil’s Vosnika family will own the remaining 50 percent.
The grain elevators that have been spun off are located in the southern Brazilian state of Paraná, one of the few regions in the country that is conducive to wheat cultivation.
Moageira e Agrícola has historically produced flour from wheat, but has slowly shifted to buying the grain directly from farmers and has stockpiled volumes exceeding its flour requirements. The joint venture will originate its own wheat supply and will conduct its own trading operations.