3 things Olam can expect with its partnership with Mitsubishi

The deal presents new business opportunities for Olam.

Japan firm Mitsubishi Corporation recently snap up 20% stake in Olam at $2.75 per share. Aside from Olam raising $915m through a share placement, what else can it reap from the partnership?

According to DBS Vickers Securities, beyond strengthening Olam’s balance sheet and providing firepower for additional acquisitions, the new strategic partnership presents new business opportunities.

" It can tap on MC’s global distribution network, expertise in areas such as rice farming and milling, as well as potentially distributing MC’s packaged food brands in Africa," DBS said.

The research house noted that in the near term, a joint venture will also be established in Japan to act as an
importer and marketer of various agricultural products.