FINANCIAL NEWS

Egypt’s OCI agrees to sell stake in Gavilon to Marubeni

29 May 2012

(MENAFN) Egypt’s Orascom Construction Industries (OCI) agreed to sell its 16.8 percent stake in grains merchant Gavilon to Japanese trading house Marubeni for USD605 million, Reuters reported.

Gavilon is the third-biggest US grain merchant in terms of the size of its marketing network, behind Archer Daniels Midland (ADM) and Cargill, and also has large energy and fertilizer trading assets.

OCI plans to use the cash from the deal, expected to be sealed by September, to finance its fertilizer group expansion strategy in North America and may also invest in other opportunities under review, the company said.

The company added that part of the proceeds will be returned to stakeholders.

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