REFILE-UPDATE 1-Mitsui enters Brazil auto parts market with $58.5 mln buy - Nikkei

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Feb 23 (Reuters) - Japanese trading company Mitsui & Co bought Brazil's Veloce Logistica SA for 4.7 billion yen ($58.5 million) to expand into the South American country's auto parts distribution business, the Nikkei said.

Veloce Logistica manages parts transportation, runs distribution centers and handles deliveries in Brazil and Argentina for local plants of General Motors Co and other major automakers, the business daily said.

Mitsui bought the third-ranked Brazilian player, which employs about 500 people and generates sales of about 9 billion yen, from a local private equity firm and other investors, the Nikkei said.

Mitsui has been running auto parts distribution in the U.S., Europe and Asia for Toyota Motor Corp, the paper said.

In Brazil, Mitsui expects to tap demand from Japanese car makers including Honda Motor Co Ltd and European rivals like Renault SA and Volkswagen AG, the daily reported.

Mitsui also expects to boost transportation efficiency by shipping consumer good for local units of Unilever NV, Nestle SA and others on the way back from delivering autoparts, the Nikkei said. ($1 = 80.3200 Japanese yen) (Reporting by Chandni Doulatramani in Bangalore)