Zen-Noh Grain Corporation (ZGC) is now divesting 11 of the 35 U.S. grain elevators they planned to purchase from Bunge North America nearly one year ago. Viserion Grain, LLC has entered into an agreement to acquire the 11 facilities, including the Savanna and Shawneetown, Illinois, elevators.
After the U.S. Department of Justice’s (DOJ) review, ZGC decided to divest the Illinois elevators and others in Arkansas, Louisiana, Iowa and Missouri in order to receive regulatory approval. The 11 facilities along the Mississippi and Ohio Rivers have a total storage capacity of approximately 25 million bushels.
“Illinois Farm Bureau leaders provided direct input to the DOJ Antitrust Division last year,” said Adam Nielsen, IFB director of national legislation. “IFB Vice President Brian Duncan and former Carroll County President Brad Smith participated in a call where they laid out their competition concerns on the Illinois side of the river between the Quad Cities and Dubuque, Iowa. They also answered questions from DOJ attorneys reviewing the merger.”
Both transactions remain subject to clearance from the U.S. Department of Justice, and the sale to Viserion is conditioned on the closing of the Bunge acquisition.
ZGC is the U.S. subsidiary of the National Federation of Agricultural Cooperative Associations of Japan located in Louisiana. ZGC’s affiliate, CGB Enterprises, will operate the acquired Bunge facilities through its wholly owned subsidiary, Consolidated Grain and Barge Co.
Viserion Grain, LLC is a newly formed subsidiary of Viserion International Holdco, LLC, a global agricultural merchant based in Colorado. Viserion is backed by Pinnacle Asset Management, L.P., a private, New-York based alternative asset management firm focused on global commodities markets.
Pending approval, all transactions are expected to close in late spring.