CHS Inc. exploring sale of share in Multigrain S.A.

by World Grain Staff
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ST. PAUL, MINNESOTA, U.S. — CHS Inc. announced on Jan. 12 that it is exploring a possible change in its ownership of Multigrain S.A., a joint venture with PMG Trading and Mitsui and Co., Ltd., but it has not finalized any agreements.

"In keeping with our commitment to providing our member owners and customers with year-round access in a complex global grain market, CHS is continually examining its business arrangements, assets and opportunities," said Mark Palmquist, executive vice-president and chief operating officer, ag business. "Specifically, we are exploring options in Brazil to further expand our grain origination, logistics and transportation and export capabilities to support our long-term global growth strategy in agriculture and energy commodities."

CHS is committed to an ongoing grain origination presence in Brazil along with other global grain origination and marketing points as an important means of complementing the company's core U.S. producer origination and adding value for its customers and owners year-around.

"While the Multigrain partnership has benefitted CHS and its shareholders, we recognize CHS needs a larger South American presence to achieve its long-term strategy of global growth," said Palmquist.

The company's South American businesses include CHS do Brasil Ltda., with headquarters in Sao Paulo, and CHS de Argentina with headquarters in Buenos Aires, which procure grains and oilseeds for global customers and export from multiple southern Brazil ports.
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