Tokyo-based Marubeni Corp. has discussed the possible sale of its U.S. grains unit Gavilon Group LLC with at least two other trading firms, Bloomberg reported on Sept. 30, citing people familiar with the matter. Talks are preliminary and no decision has been made, the people said. In response to Bloomberg inquiries, Marubeni denied that it has sounded out or approached trading firms for a potential sale of Gavilon and said it is not considering selling the unit. Gavilon declined to comment.
Marubeni bought Omaha-based Gavilon for $2.7 billion in 2013 in an effort to expand its sourcing of corn and soybeans to better compete with other top global grain traders in Asia. Since then, low commodity prices and the U.S.-China trade war have weighed on both companies, Bloomberg reported. More than two years ago, Gavilon was seen as a potential target for Glencore Plc as the Swiss company looked to enter the U.S. grains-trading market, but Gavilon denied it was looking for a buyer.