Marubeni, INCJ Expand Water Utility Business to Portugal, Brazil

Jun 25, 2014 5:09 am ET

June 25 (Bloomberg) -- Marubeni Corp., a Japanese trading house that offers water services to more than 6 million people globally, said it agreed with a partner to buy a Portuguese utility that also owns Brazilian assets.

The trader and the Innovation Network Corp. of Japan, or INCJ, will each buy 50 percent of Administração e Gestão de Sistemas de Salubridade SA, one of Portugal’s largest water utilities, the Tokyo-based company said today in a statement. The seller is Somague Ambiente SGPS SA, a unit of Spanish construction firm Sacyr Valleheremoso, Marubeni said.

The companies did not disclose the financial terms of the deal. It may have cost about 10 billion yen ($98 million), NHK reported yesterday, citing an unidentified person.

Marubeni, whose businesses include coal mining and kimono sales, is adding assets in power and water services to offset a decline in the price of raw materials. The trader owns water treatment and sewage businesses in Chile, China, Australia, Peru and the Philippines.