Mitsui & Co., Ltd. ("Mitsui," head office: Tokyo, President and CEO: Masami Iijima) decided to set up a credit line of up to US$ 500 million to Multigrain AG ("MAG"), a wholly owned subsidiary of Mitsui. MAG currently secures funding for its working capital from financial institutions without credit support by Mitsui. A part of these debts will be repaid by proceeds of new borrowings with this credit line.
In March 2012, the Brazilian Federal Government amended the taxation rule which will be applied to foreign exchange transactions. After thorough examination of economical effects this amendment would have on MAG's funding, Mitsui decided that MAG should primarily utilize this credit line from Mitsui.
MAG became Mitsui's wholly owned subsidiary in May 2011. Mitsui has been engaged in agricultural production and the distribution of grain in Brazil through MAG. The global demand for grain is expected to increase as world population grows and as the economy in the emerging countries continue to develop. Viewing MAG as a major subsidiary in its grain business, Mitsui strives to stabilize business operations of MAG and to secure a consistent supply of grain from Brazil to Asian and other markets.
Outline of MAG
|Head office location
||Nobuhiko Tomishima, Chief Executive Officer
||Production, origination, processing, export and marketing of agricultural products, mainly soybeans, in Brazil.
||CHF 145 million (as of December 31, 2011)
|Year of establishment
||US$ 321 million (as of December 31, 2011)
||US$ 1,233 million (as of December 31, 2011)
||Mitsui holds 100% of shares excluding treasury stock of MAG.
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