Mitsui Bussan Gains 49% of Biggest Gas Company in Brazil

Mitsui Bussan has purchased 49% of stock share of the biggest Brazilian gas company for 60 billion Japanese yen.

The price of Natural resources such as iron ore and crude oil has been lowering and resource related business has been unstable for the last years. However, demand for natural gasses is stable compared to iron ores and crude oils. Therefore, the Japanese company has made this decision to stabilize their business by expanding the natural resource business with gas supply and increase the income.

According to the related party, Mitsui Bussan gains 49% of stock share of the biggest gas company of Brazil named "Gaspetro" on October 24. Gaspetro is completely under "Petrobras" which is a petroleum corporation run by the country.

In order to bid for the stake, another Chinese gas company was also interested but Mitsui Bussan has won it by investing 60 billion yen. This investment will allow Mitsui Bussan to have half of the share of profit created by providing gas for over two million population in Brazil.

Decreasing in the growth of Chinese market is affecting the price of iron ore and crude oil to decrease too and today is a difficult time for a company to make a profit from natural resources. Even though the raise of growth rate is slowing down, Brazil is a market where huge profit can be created with natural gas business in the future. Mitsui Bussan wants to have a new source of income by this investment in South American country.

Natural resources business has been one of the main income for many of the Japanese major trading firm. However, the market of resource related business is tough today and many companies might start investing in infrastructure business just like Mitsui Bussan to stabilize the income.