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Participation in Mexico's largest natural gas distribution company

Sep. 19, 2012


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Mitsui & Co., Ltd. ("Mitsui") (Head Office: Tokyo, Japan; CEO: Masami Iijima), through its holding company, MIT Gas México, S. de R.L. de C.V. ("MGM"), will participate in the gas distribution business in Mexico. MGM concluded a share purchase agreement with Iberdrola Energía, S.A.U., a wholly owned subsidiary of Iberdrola, S.A. ("Iberdrola") on September 18, 2012, for Mitsui's acquisition of a 13.25% share in Gas Natural Mexico, S.A. de C.V. ("GNM") with the purchase amount of US$ 82million (Approx. J¥ 6.5bil.). The completion of the transaction is subject to the relevant regulatory approvals.

In addition, Mitsui has also reached an agreement with the remaining shareholders in GNM to acquire 1.75% of an additional shareholding in GNM with the purchase amount of US$ 10.8milliion (Approx. J¥ 0.9bil.) to reach 15% in total. The completion of this transaction is also subject to the relevant regulatory approvals and closing of the purchase to Iberdrola.

GNM is providing natural gas distribution for residential, commercial and industrial segments in 6 zones in Mexico, including Mexico City and Monterrey, which are two of the largest cities, and Toluca and Bajio, which are two of the most developing cities in the country. GNM is providing its services to 1.3million customers and is the leading natural gas distribution company in Mexico, having a top market share both in terms of the number of clients and gas distribution volume.

Mitsui is currently engaged in various natural gas related businesses in Mexico, including the LNG receiving terminal at Manzanillo on the Pacific coast and 6 gas-fired power plants in the country, as well as a gas distribution business in 7 states of Brazil. Mitsui considers this transaction as a part of the vertical and horizontal expansion of Mitsui's activities in gas related business and aims for further improvement of operation and service in each business utilizing its accumulated know-how in management and operation from existing businesses.

Mitsui expects further strong growth in the natural gas related market in Mexico based on the continuous demand increase caused by the steady and sustainable economic growth of the country and on the diversification of supply thanks to the shale gas development in Mexico and the US.
Mitsui, through this participation in GNM, continues to pursue further expansion of its activities in gas related infrastructure businesses in Mexico, contributing to the social and economic development of Mexico through the realization of infrastructure for a stable and sustainable energy supply.

Company Profilet

(1) GNM

Name of Company Gas Natural Mexico, S.A. de C.V.
Head Office Mexico City, Mexico
Establishment July, 1990
Shareholders Mitsui 15%, Holding Gasinmex, S.A. de C.V. 85%
Business Activities Natural gas distribution for residential, commercial and industrial segments in Mexico
Service Area Mexico City, Monterrey, Toluca, Bajio, Saltillo, Nuevo Laredo
Clients Around 1.3mil.
Distribution Volume Around 46,000GWh (Heating value basis)
Distribution Network Around 17,000km

(2) Iberdrola

Name of Company Iberdrola, S.A.
Head Office Bilbao, Spain
Establishment Predecessor of the company was established in 1902
Business Activities One of the main electricity companies worldwide, with presence mainly in the United Kingdom, the United States of America, Brazil, Mexico and Spain

(3) Mitsui's holding company

Name of Company MIT Gas México, S. de R.L. de C.V.
Head Office Mexico City, Mexico
Establishment August, 2012
Shareholder Mitsui 100%
Business Activities Holding company for investment in GNM

Notice:
This announcement contains forward-looking statements. These forward-looking statements are based on Mitsui's current assumptions, expectations and beliefs in light of the information currently possessed by it and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui's actual results, financial position or cash flows to be materially different from any future results, financial position or cash flows expressed or implied by these forward-looking statements. These risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest Annual Securities Report and Quarterly Securities Report, and Mitsui undertakes no obligation to publicly update or revise any forward-looking statements.
This announcement is published in order to publicly announce specific facts stated above, and does not constitute a solicitation of investments or any similar act inside or outside of Japan, regarding the shares, bonds or other securities issued by us.

Information

For inquiries on this matter, please contact

Mitsui & Co., Ltd.
Corporate Communications Division
Mikako Sachigai
Telephone: +81-3-3285-7596
Facsimile: +81-3-3285-9819