U.S. firm Skadden, Arps, Slate, Meagher & Flom has advised Japanese trading house Marubeni Corp on its acquisition of U.S. commodity management company Gavilon – represented by Jones Day – for $3.6 billion.

Marubeni is betting heavily on the assumption that China’s demand for imported corn will continue to surge. The acquisition, which will nearly double Marubeni’s grain trading volumes, is the largest overseas acquisition in agriculture or energy by a Japanese company since Japan Tobacco bought British cigarette maker Gallaher Group for almost $19 billion in 2006, according to Reuters data.

Gavilon has about $2 billion in debt, which would take the total value of the transaction to $5.6 billion, Marubeni said. The Japanese company added that the acquisition will be partially financed by bank borrowing.

Skadden’s team was led by New York-based partners Patricia Moran (M&A) and Sally Thurston (Tax), and Tokyo partner Nobuhisa Ishizuka (Corporate).

Morgan Stanley is advising Gavilon on the transaction, while Nomura is assisting Marubeni.

“As part of a larger trading organisation, Gavilon will be well positioned to more efficiently connect supply with growing global demand,” said Gavilon president and CEO, Greg Heckman, in a statement.

Reuters reports that analysts see a blend of Marubeni and Gavilon as a good commercial fit, combining Gavilon’s presence in the U.S. with Marubeni’s operations in the Pacific Northwest; the shortest route from U.S. to Asia by sea. ALB

Kanishk Verghese is North Asia journalist at ALB. Follow him on Twitter: @ALB_Magazine.

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