TOKYO, JAPAN — Mitsubishi Corporation announced on June 3 that Agrex do Brasil, a wholly-owned subsidiary of Mitsubishi Group, will acquire an additional 60% of previously issued shares in Balsas, Maranhão, Brazil-based Los Grobo Ceagro do Brasil S.A. (Ceagro). The company noted that through this acquisition, its shareholdings of Ceagro will increase from 20% to 80%, making Ceagro a Mitsubishi consolidated subsidiary.

Ceagro’s business activities range from grain production and procurement to sales and export, handling approximately 1 million tonnes of grain commodities (mainly soybeans and corn) annually in the central and northern regions of Brazil, where continuous growth in grain production is expected. Through this acquisition Mitsubishi said it aims to further strengthen its grain procurement system in Brazil and expand its business by improving efficiency in logistics.

The company noted it has designated Brazil a strategic region in its New Strategic Direction. With expectations to also increase production and export of corn, Brazil has become an important grain supply source in conjunction with increasing global demand for grain.

Mitsubishi’s New Strategic Direction sets out as part of its long-term growth vision circa 2020 to double the company’s earnings in non-resource businesses such as food and retail and to capture growth in Asia.

While seeking to expand its food and commodity supply sources globally, mainly in North and South America and Australia, Mitsubishi aims to handle approximately 20 million tonnes of grain commodities per year. Mitsubishi also seeks to expand its businesses in processed grain products, such as feed, meat and wheat flour, in importing regions, mainly Japan, China and Southeast Asia, and to effectively contribute to securing a stable supply of food products for consumers.