, Singapore

Find out why Olam's Mitsubishi deal is as good as it gets

They will get to tap on MC's global distribution network.

After its share price jumped following the announcement of the JV, the agri-business company will get to reap more rewards as the agreement allows it to harness Mitsubishi's expertise in areas such as rice farming and milling.

In addition to this, Olam might also get the chance to distribute MC's package food brands in Africa.

According to analysts from DBS, a JV will be established in Japan to act as an importer and marketer of various agricultural products.

"Olam’s balance sheet will also be strengthened with net debt/equity as at end-Dec15 projected to drop from 2.3x to 1.7x," DBS said.
 

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