Clifford Chance has advised Mitsubishi Corp on its acquisition of a 20 percent stake in Olam International for approximately $1.1 billion, with WongPartnership advising the issuer.
According to Reuters, Mitsubishi’s purchase of the stake in Olam is a key vote of confidence that will allow the Singapore agri-trader to exploit M&A opportunities thrown up by the slump in the global commodities market.
The deal will also help Olam, whose accounting practices were attacked in 2012 by short seller Muddy Waters before it was rescued by Singapore state investor Temasek, make greater inroads into Japan while gaining a hand in building businesses in Africa.
The Clifford Chance team was led by partners Lee Taylor and Kathy Honeywood, with partners Raymond Tong and Nish Shetty advising on the regulatory aspects of the transaction.
Meanwhile, the WongPartnership team included joint managing partner Ng Wai King, and partners Audrey Chng and James Choo.
Olam, one of the world's leading traders in commodities such as coffee, cocoa and rice, said it picked Mitsubishi in a competitive bidding process and the firms would explore strategic partnerships. It declined to provide the names of the other bidders.
Mitsubishi, one of Japan's biggest trading houses, said the tie-up will help combine the group's processing, manufacturing and downstream business experience with Olam's extensive sustainable raw material supply platforms.
