Marubeni Corporation - Announcement Regarding the Completion of the Gavilon Shares Transfer
October 04, 2022 at 06:53 am EDT
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As Marubeni Corporation ('Marubeni') announced on January 26, 2022, its Board of Directors resolved that Marubeni would transfer the grain business of Gavilon Agriculture Investment, Inc. ('Gavilon'), a subsidiary of Marubeni America Corporation ('MAC', itself a 100% subsidiary of Marubeni) whose main businesses are the handling of grain and ingredients and fertilizer wholesaling in the United States, to Viterra Limited ('Viterra'), following a reorganization of Gavilon's structure, and it concluded the Share Purchase Agreement ('SPA') with Viterra on the same day.
In relation to this previous announcement, Marubeni now further announces that the Gavilon shares transfer was completed on October 3, 2022, after obtaining all necessary approvals from the relevant competition authorities and fulfilling all other closing conditions as agreed upon in the SPA. The sales price will be finalized based on net trade working capital and net debt, etc. on the closing date agreed with Viterra, but as of October 3, 2022, Marubeni has received a total of approximately US$ 3 billion (including group finance from Marubeni to Gavilon), based on the best estimate at the time of closing. Marubeni expects to record a gain from the share transfer in the fiscal year ending March 31, 2023 (FY2022Q3 ending December 31, 2022), with the amount of the gain estimated to be approximately JPY 55 billion. In the event that any matters relating to the transaction requiring disclosure arise, Marubeni will disclose information about such matters promptly. Marubeni's full-year prospects for the fiscal year ending March 31, 2023, is under review and scheduled to be published on November 4, 2022
Marubeni Corporation is a diversified group organized primarily around 12 business segments:
- sale of agricultural products and related services (47% of net sales): sale of agricultural inputs (crop protection products, fertilizers, seeds, etc.), precision farming services, formulation of crop protection products, export of cereals and oilseeds, etc.;
- sale of food products (17.6%);
- production and distribution of oil, gas, alternative energy and electricity (10.4%);
- production of chemicals and petrochemicals (6.4%);
- production of metals and mineral resources (4.9%);
- sale and financing of industrial and construction machinery and equipment (4.6%). The group also develops car sales and tire distribution activities;
- sales of consumer electronics (4.3%). In addition, the group develops real estate development and management activities;
- sale of forest products (2.3%): wood chips and biomass fuel, pulp and waste paper, paper, paperboard, hygiene products, building & construction materials and wood products;
- sale of apparel, accessories, textile and lifestyle products (1.1%);
- management and operation of aircraft and ships (1%);
- development of energy production units and industrial installations (0.3%);
- finance and leasing (0.1%): auto finance, aircraft leasing, aircraft engine leasing, leasing and renting of refrigerated trailers, commercial vehicles and commercial freight railcars, etc.
Net sales are distributed geographically as follows: Japan (37.2%), the United States (42.5%)
MARUBENI CORPORATION 
