Headquartered in Tokyo, Metal One will take possession of eight Cargill processing plants and its commercial activities in Huston and Minneapolis. The company intends to set up a U.S. subsidiary to manage the newly acquired assets, expanding on its existing national steel distribution capabilities within America.
“This acquisition will be a great strategic fit with our current asset base in North America,” Metal One’s president and chief executive officer, Shuichi Iwata, said in a Cargill press release announcing the agreement. “We will provide continuous support for the excellent customer and supplier relationships that Cargill has established in the U.S. metals market and we look forward to leveraging the acquired business to further enhance our presence in the U.S.”
Cargill said it expects the sale to close before the end of 2017.
“While no longer owning steel processing centers, Cargill will continue to be active in global ferrous markets, offering tailored physical supply and financial solutions in iron ore and steel through our business in the Asia Pacific region,” said David Dines, president of Cargill Metals & Shipping, in a statement.