Japan-based Metal One Corp. has reached an agreement to acquire the US metals business from Cargill.
A purchase agreement was signed on 8 September 2017, and the two parties expect to close the sale later this year.
The agreement includes Cargill’s US metals supply chain business, which includes commercial activities based in Minneapolis and Houston, as well as eight processing facilities in seven US cities: Windsor, Colorado; Panama City, Florida; Granite City, Illinois (two facilities); East Chicago, Indiana; Tulsa, Oklahoma; Loudon, Tennessee; and Houston, Texas.
Metal One will establish a wholly-owned subsidiary in the US to manage the new business.
Currently Metal One has extensive capabilities in steel distribution throughout the US, and the acquisition will enable Metal One to expand and diversify its operations by adding a proven business to the company’s growing portfolio.
“This acquisition will be a great strategic fit with our current asset base in North America,” said Shuichi Iwata, President & CEO of Metal One. “We will provide continuous support for the excellent customer and supplier relationships that Cargill has established in the US metals market, and we look forward to leveraging the acquired business to further enhance our presence in the US.”
“We are pleased to find a strategic buyer in Metal One which has a focus in the ferrous industry and an intent to grow and expand in North America,” said David Dines, President of Cargill Metals & Shipping. “While no longer owning steel processing centres, Cargill will continue to be active in global ferrous markets, offering tailored physical supply and financial solutions in iron ore and steel through our business in the Asia Pacific region.”
Read the article online at: https://www.drybulkmagazine.com/dry-bulk/12092017/metal-one-to-acquire-cargills-us-metals-business/