Sodruges and Mitsui form strategic alliance
This week, Sodrugestevo Group (Sodru), a fast growing, agro-industrial company with core businesses in Russia, Brazil and Europe, announced a strategic, global partnership with Mitsui, one of the world's most diversified trading, investment and service companies. As part of that relationship, Mitsui is purchasing a 10% minority investment in Sodru.
In conjunction with the share purchase by Mitsui, the two global companies have signed a strategic agreement whose main elements include:
- an alliance in the origination, export and marketing of grain from Russia and other former Soviet Union countries;
- support for Mitsui’s participation in the feed and livestock business in Russia and other former Soviet Union countries where the demand for and production of meat has been growing;
- and a collaboration in the soybean origination, processing and distribution business in Brazil between Sodrugestvo’s Aliança (previously known as Carol-Sodru) joint venture and Mitsui’s Multigrain grain farming and logistics subsidiary.
The collaboration in the origination and export of grain produced in Russia and other former Soviet Union countries provides a preferential right to Mitsui for grain supplied/exported by Sodrugestvo. Mitsui plans to develop marketing outlets for the grain in the Middle East and Africa as well as with existing clients mainly located in Japan and Asia. In addition, Mitsui will share its expertise in the international grain trading business with Sodrugestvo as well as provide global market intelligence from its global trading network.
This is a "win-win" situation for both organizations since it will open up new global markets for Russian grain and at the same time help catapult Sodru into becoming a global force in the soybean business.
Mitsui is an ideal partner for Sodru since it brings unparalleled expertise in the international grain trading business as well as global market intelligence from its global trading network. Sodru had consolidated sales of nearly $2 billion in its fiscal year ending June 30, 2012. The company enjoys an average annual growth of 20 percent or more for the last 10 years.
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