Mitsui, which acquired a full stake in Multigrain from CHS Inc. in 2011 for $431 million, said the unit, which trades soybeans and corn, had experienced losses the last four years due to increasing competition from global grain companies and Chinese operators.
The company booked a one-off charge of $351 million on Multigrain in the fiscal year ended March 31, the report said, noting that Mitsui had warned in February that a restructuring of the unit was likely.
A company spokesman told Reuters that Multigrain reduced the company’s full-year earnings by about $438 million.
Mitsui & Co. is one of the largest general trading companies in Japan, and also part of the Mitsui Group. Its business area includes a wide range of sectors such as energy, machinery, chemicals, food, textile, logistics and finance.