SINGAPORE — Olam International Limited announced on June 23 a partnership with Mitsubishi Corp. of Japan (MC) in which MC will invest $64 million for an 80% equity interest in wholly owned subsidiary, Olam Grains Australia (OGA). The partnership will leverage growth opportunities in the Australian Grains business.

The enterprise valuation at 100% of OGA is $80 million, including working capital delivered at closing. The price consideration was determined on a willing-buyer, willing-seller basis.

OGA’s business comprises mainly origination, trading, logistics and marketing activities as well as a 32.5% stake in Newcastle Agri Terminal, which commenced operations in February 2014. Olam will continue to hold a 20% equity interest in OGA.

MC develops and operates businesses globally across diverse fields including environment and infrastructure, industrial finance and logistics, energy, metals, machinery, chemicals, living essentials and business services. The Living Essentials Resources Division of MC’s Living Essentials Group will take the lead for MC in the new partnership.

Olam’s President and Global Head of Grains Business, KC Suresh said, “Mitsubishi Corporation is our partner of choice in leveraging the growing Asian demand for grains and competing effectively in the Australian grain industry. Together, we plan to invest in upcountry procurement and logistics to scale up our local presence and further build a differentiated and competitive model in Australia.”

MC’s partnership with and confidence in Olam, one of the world’s leading agri-businesses, reflects its positive view of the prospects offered by the Australian grain industry in relation to the overseas markets the company serves. MC views the Olam-MC partnership as a strong foundation on which to build a profitable and sustainable grains business in Australia.

Subject to standard closing conditions, the transaction is expected to be completed in early fiscal year 2015.