Olam eyes M&A after $1.1b Mitsubishi investment

Commodites trader Olam on the look out for battered commodity assets as it raises funds from strategic Mitsubishi stake sale.

Mitsubishi Corp has agreed to buy a 20% stake in Olam International for S$1.53 billion $1.1 billion -- in a deal that will give the once-troubled Singapore-listed commodities trader dry powder to acquire depressed commodity assets.

The investment is going to be helpful given the dislocated commodity market and we feel that there are assets there which are trading at below fair value, Sunny Varghese, Olam's chief executive officer, said in a conference call, citing the ongoing slump in global commodity prices. If those assets are in line with our strategy, then we would be opportunistic about some of them.

Mitsubishi's acquisition...

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