In its second agricultural deal in four months, Mitsubishi Corporation has bought a controlling stake in Olam Grains Australia. Singapore-based Olam will retain the remaining 20%. The Australian grain sector has been attracting global players including U.S. Cargill and CHS, Glencore Xstrara, Sumitomo, and now Mitsubishi. This is the second sell down by Olam within seven months as the company moves to consolidate assets after a multi-year buying spree. Grain companies are drawn to Australia because of the country’s low domestic demand, high crop production, and proximity to growing Asian markets. Last year the Australian government called for more needed competition in the sector. Both Qube Holdings and Noble Group will be establishing a grain terminal in port Kembla in New South Wales in 2016 and Emerald is planning to expand its facilities in Melbourne. Mitsubishi Corporation, which handles 10 million tons of grain per year aims to double that capacity by 2020. Last year it bought a majority stake in Brazilian grain group Ceagro in association with Colcafe, a subsidiary of Grupo Nutresa, Brazil’s largest food company.
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