Japanese global establishment Mitsubishi has agreed to acquire 20% stake in agri-business firm Olam International, in two deals that are valued at around S$1.53bn ($1.09bn).
Under the agreed terms, Mitsubishi will acquire 332.73 million new shares in Olam which will give the former a 12% stake of the latter.
Mitsubishi said that it is also acquiring 222.0 million secondary shares in Olam from the Kewalram Chanrai Group, representing 8% stake.
Both the companies will work on expanding the network for procurement of food products to cater to the increasing consumer demand for sustainable food products across the globe.
Mitsubishi and Olam will also set up a joint venture in Japan to handle coffee, cocoa and edible nuts, as well as continue to supply customers with sustainably produced processed foods.
With this partnership, Mitsubishi will be able to expand its presence in Africa, where Olam already has a raw materials and food processing base.
Olam group managing director and CEO Sunny Verghese said: "I am pleased to welcome Mitsubishi Corporation as a long-term strategic shareholder in Olam. We have been business partners for many years and share a lot of the same goals and beliefs about the future of our sector and the attractive long term prospects that it offers.
"I am confident that this partnership with Mitsubishi will provide several sources of synergy which will help accelerate Olam's growth and harness its full potential."
Temasek will remain Olam's majority shareholder with a 51.4% controlling stake.
