Brazil's anti-trust agency Cade approved a joint venture between Gavilon, the U.S.-based grains trading company owned by Japan's Marubeni Corp , and SA Moageira e Agrícola, a Brazilian wheat miller and distributor, the agency said.
The companies sought approval for the venture after, Moageira e Agrícola spun off grain elevators in Ipiranga and Irati, Brazil, into a new company and Gavilon bought half of it. The joint venture will obtain its own wheat and conduct trading operations.
The Brazilian unit of Omaha, Nebraska-based Gavilon will own 50 percent of the venture and Moageira e Agrícola, owned by the Vosnika family of Brazil's Paraná state, will own the rest. Marcelo Vosnika, one of Moageira and Agrícola's shareholders, is chairman of the board of Brazil's Wheat Association, Abitrigo.
Gavilon officials declined to give a purchase price. Moageira and Agrícola officials did not return calls requesting comment.
Both the grain elevators are in Brazil's southern state of Paraná, one of Brazil's few subtropical states where the climate is conducive to wheat growing.
Moageira e Agrícola, which has traditionally made flour from wheat, has gradually moved into buying the grain directly from farmers and has built up quantities in excess of its flour needs, Cade said in its report approving the transaction.