Noble

Noble: Several Asian trading firms, including Mitsui & Co, Marubeni Corp and Noble, are in the running for US grain and energy trader Gavilon, which could be valued at about $5b, according to sources familiar with the matter.

Sources have previously said that Swiss trader Glencore and US based Bunge had expressed interest in the co before that deadline. But Glencore's interest in Gavilon has cooled after it agreed to buy Viterra, Canada's largest grain handler, in a $6.2b deal on Tue, according to one of the sources.

Several industry sources said Gavilon's two larger US rivals, Archer Daniels Midland and Cargill, are also unlikely buyers because they would encounter antitrust problems if they were to bid for all of the co. Gavilon is the third-largest grains marketing network in the US behind ADM and Cargill. The co has a leading fertilizer distribution system, a network of grain storage bins and oil storage facilities in Oklahoma. A deal for Gavilon would give the Asian trading co’s a sizable presence in key US agriculture mkts.

Noble's grains and oilseeds operation could benefit from a potential acquisition because its operations currently focus on South America, Europe and Asia. Marubeni is pursuing global grain sales operations. We note that a potential acquisition of Gavilon by Noble could see a delay in a potential listing via its agriculutural spin-off, due to integration and stabilizing of new assets.