Japanese Sumitomo Corp has taken full ownership of Australia’s bulk grain handler Emerald Grain through the purchase of its partner Emerald Agribusiness Group Pty.
According to the article on Reuters, no financial details of the purchase agreement have been revealed so far.
“As a 100 percent subsidiary of Sumitomo Corp the company will be able to fund future growth and expansion and compete more effectively in an Australian and Asian grain market that is now heavily influenced by global companies,” said Alan Winney, Chairman of Emerald Grain and of Emerald Agribusiness Group Pty.
Emerald Grain revealed that it had consulted the Foreign Investment Review Board, as well as the Australian Consumers and Competition Commission before completing the deal with Sumitomo Corp.
According to the news release by Emerald Grain, the new ownership structure will give the company access to the significant capital that is needed to fund the expansion in grain accumulation capability and processing assets.
“We are very proud to have Emerald Grain 100 per cent owned and as part of the Sumitomo Corporation. It is a strong business that has seen rapid growth and built enduring relationships with growers and grain consumers over many years. It enjoys a unique market position being the only grain marketing company with local grain merchants in all grain growing regions of Australia and its own supply chain network in south eastern Australia, including the port facility at the Port of Melbourne,” said Sumitomo Corporation General Manager of Grains & Oilseeds and Emerald Director Hiro Kurosaki.
“Emerald Grain will continue to be a brand that represents superior Australian grain,” he said. “Under the new ownership structure Emerald Grain will be well positioned for additional grain and food processing opportunities in Australia and internationally, working alongside its sister companies in Sumitomo,” said Mr Kurosaki.
Emerald Grain handles about 4.5 million tonnes of grain annually, trailing bigger players like GrainCorp (GNC.AX), Cargill CARGIL.UL and Australia’s largest bulk grain handler CBH Group.
