(Bloomberg) -- Japanese trading giant Itochu Corp. has bought a minority stake in Javelin Global Commodities, the historically coal-focused firm that’s fast expanding into oil, metals and renewables.
The companies didn’t disclose the size of the stake taken by Itochu, or the amount paid, in a statement Wednesday. Itochu previously lent London-based Javelin $25 million as a convertible bond, and the two firms had significant commercial agreements in coal according to company filings in the UK.
The deal comes as Javelin — founded by two former Goldman Sachs Group Inc. traders in 2015 — goes through a period of expansion, after cashing in on Europe’s sudden rush for coal imports following Russia’s invasion of Ukraine in 2022.
It has hired other Goldman alumni to build a metals business and is partnering with US power plants on renewable-energy deals. A company spokesperson said that Itochu’s shareholding will help grow the company, especially in Asia.
“Javelin is highly focused on Asia and has not only enlarged our Singapore office but has plans to open an office in Shanghai in 2025,” the company said in emailed comments to Bloomberg News. Javelin is also expanding in the US, particularly in oil, gas, metals and renewables, a spokesperson said.
It’s not the first time Javelin has attracted interest from another major commodity trader. Mercuria Energy Group previously made an unsuccessful bid for Murray Energy Corp.’s stake in the firm, while Uniper SE is another former investor.
The move also comes after trading giant Vitol Group recently agreed to buy Singapore-based Noble Resources, a significant player in metallurgical coal.
--With assistance from Todd Gillespie.
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