Investment and trading group Summa has asked the state development bank Vneshekonombank to fund a possible acquisition of Australia's GrainCorp, sources told Reuters on Wednesday.
Summa Group's interest in the Australian company comes at a time of consolidation in the global grains sector amid intense competition for trading power to feed fast-developing countries seeking food security.
"There was an appeal to VEB [from Summa]. Summa is still interested in global grain business," a source familiar with the matter said.
However, Summa may drop the request because GrainCorp could be too expensive, another source with knowledge of the plans added.
Summa, co-owner of grain trader United Grain Company, and VEB declined to comment.
U.S. agriculture giant Archer Daniels Midland made a $2.8 billion bid for GrainCorp on Oct. 22, sending shares in Australia's last independent grains handler soaring as markets bet on a higher offer price or rival bids being flushed out.
GrainCorp is one of a number of possible deals involving the acquisitive Summa Group, which is viewed in the industry as having close ties with Russian Prime Minister Dmitry Medvedev.
Summa, owned by tycoon Ziyavudin Magomedov, bought a 49 percent stake in the state grain trader UGC for 6 billion rubles ($180 million) this year and aims to acquire a 56 percent stake in transport group FESCO.
VEB agreed in September to provide financing of up to $250 million for Summa to build a grain terminal in Russia's Far East.
Related articles:
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
